Home News Abu Dhabi Ports begins trading after raising $1.1bn in latest UAE IPO

Abu Dhabi Ports begins trading after raising $1.1bn in latest UAE IPO

by Dubai Forum
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Stocks in Abu Dhabi Ports Workforce opened to business at 3.6 dirhams ($0.98) consistent with proportion on its debut on Tuesday, after elevating 4 billion dirhams ($1.1 billion) in a proportion sale, marking the primary in a sequence of extremely expected listings for the United Arab Emirates this yr.

Abu Dhabi Ports, now buying and selling at the Abu Dhabi Securities Trade (ADX) as ADPORTS, operates 10 ports within the UAE, a terminal in Guinea and a number of other logistics and commercial zones. Its flagship Khalifa Port in Abu Dhabi was once the primary deep-water and semi-automated container port within the GCC area. 

“The money proceeds from this number one issuance can be used to fund the corporate’s natural and inorganic enlargement plans, permitting the corporate to boost up its native and world growth plans,” the corporate mentioned in its investor filing.

Abu Dhabi Ports is owned by way of ADQ, the UAE’s 3rd biggest sovereign wealth fund. ADQ will stay the bulk shareholder with a 75.44% stake within the corporate. ADQ additionally transferred 22.32% stake in Aramex and a ten% stake within the Nationwide Marine Dredging Corporate to Abu Dhabi Ports previous to the sale, in keeping with filings.

Reuters additionally reported that Abu Dhabi conglomerate IHC took a 7.4 p.c stake in Abu Dhabi Ports forward of the checklist thru its subsidiary corporate Al Seer Marine, which purchased 375 million stocks value 1.2 billion dirhams ($326.74 million) in general. 

The most recent checklist comes amid a privatization push now underway within the United Arab Emirates.

ADX has observed a surge of recent listings prior to now yr, with the Abu Dhabi Nationwide Oil Corporate (ADNOC), state investor Mubadala and IHC enterprise a lot of public choices, serving to to make the ADX one of the best appearing regional markets ultimate yr.

ADNOC Drilling raised $1.1 billion for its IPO in October ultimate yr, the emirate’s largest ever checklist. Rival Saudi Arabia has additionally observed file hobby, with the IPO of bourse operator Tadawul Workforce elevating more than $1 billion dollars. It follows the $1.2 billion dollar float of renewable energy utility ACWA Power International, which was the Kingdom’s biggest since the IPO of Aramco in 2019.

The performance is in contrast to Dubai, where capital markets have trailed peers in both Abu Dhabi and Riyadh, despite renewed investor appetite across the Gulf region. Poor liquidity and a number of high profile de-listings — such as port operator DP World, Emaar Malls and Damac Properties — have dented investor sentiment in recent years. 

In November, Dubai announced plans to reverse the trend, seeking to “increase the total volume of its stock markets” to AED 3 trillion ($817 billion). The government said it plans to privatize 10 state-owned companies, without naming specific businesses or setting a date for the listings.

Business park operator TECOM, utility Dubai Electricity and Water Authority (DEWA), road toll system Salik, and businesses within Emirates Group, including dnata and loyalty program Skywards, as well as Dubai airport’s Duty Free have been rumored among those being considered for public offer. 

News of the potential new listings has sent Dubai’s benchmark DFM Index up more than 11% since the announcement.

DF

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