7th APRIL 2015 - Vol.XXXVIII No.018
Business News

Massar plans IPO in Abu Dhabi

DUBAI: Massar Solutions, a UAE vehicle rental and fleet management firm, said yesterday that it planned to list 40 per cent of its shares on Abu Dhabi's bourse, in what would be the first flotation on the emirate's stock market since 2011.

The company will seek to sell 240 million ordinary shares at 2.4 dirhams each between January 11 and 25, it said in a statement.

This would value the initial public offering (IPO) at 576m dirhams ($156.8 m), the statement added.

Shares offered in the IPO would come equally from existing shareholders Invest AD, a local financial firm, and Abu Dhabi National Energy Company (TAQA), which currently hold 51pc and 49pc of the share capital respectively.

The offer is only open to UAE nationals, with 20pc of the IPO reserved for retail investors and the rest available to them as well as to fully owned UAE companies and government institutions, the company said.

The flotation is the first in Abu Dhabi since Eshraq Properties raised 825m dirhams in May 2011.

Established in 1998, Massar currently owns and operates around 9,755 vehicles as well as manages a further fleet of 6,755 vehicles for third-party clients.

The company is planning to increase this to 16,000 and 20,000 vehicles respectively over the next five years.

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