Cranes base on the quayside at Khalifa Port on April 26, 2012.
Gabriela Maj|Bloomberg|Getty Images
DUBAI, United Arab Emirates– Shares in Abu Dhabi Ports Group rose 15% per share on its launching on Tuesday, after raising 4 billion dirhams ($ 1.1 billion) in a share sale, marking the very first in a series of extremely expected listings for the United Arab Emirates this year.
Shares were trading at 3.68 dirhams ($ 1) soon after the 10: 00 a.m. Abu Dhabi market open, up from their initial deal cost of 3.2 dirhams.
Abu Dhabi Ports, now trading on the Abu Dhabi Securities Exchange (ADX) as ADPORTS, runs 10 ports in the UAE, a terminal in Guinea and numerous logistics and commercial zones. Its flagship Khalifa Port in Abu Dhabi was the very first deep-water and semi-automated container port in the GCC area.
“The cash proceeds from this primary issuance will be used to fund the company’s organic and inorganic growth plans, allowing the company to accelerate its local and international expansion plans,” the business stated in its financier filing.
Abu Dhabi Ports is owned by ADQ, the UAE’s 3rd biggest sovereign wealth fund. ADQ will stay the bulk investor with a 75.44% stake in the business. ADQ likewise moved 22.32% stake in Aramex and a 10% stake in the National Marine Dredging Company to Abu Dhabi Ports prior to the sale, according to filings.
Reuters likewise reported that Abu Dhabi corporation IHC took a 7.4 percent stake in Abu Dhabi Ports ahead of the listing through its subsidiary business Al Seer Marine, which purchased 375 million shares worth 1.2 billion dirhams ($32674 million) in overall.
Listing spree
The most current listing comes in the middle of a privatization push now underway in the United Arab Emirates.
ADX has actually seen a rise of brand-new listings in the previous year, with the Abu Dhabi National Oil Company (ADNOC), state financier Mubadala and IHC carrying out a variety of public offerings, assisting to make the ADX amongst the very best carrying out local markets in 2015.
ADNOC Drilling raised $1.1 billion for its IPO in October in 2015, the emirate’s most significant ever noting. Rival Saudi Arabia has actually likewise seen record interest, with the IPO of bourse operator Tadawul Group raising more than $1 billion. It follows the $1.2 billion float of renewable resource utility ACWA Power International, which was the Kingdom’s most significant given that the IPO of Aramco in 2019.
The efficiency remains in contrast to Dubai, where capital markets have actually routed peers in both Abu Dhabi and Riyadh, regardless of restored financier cravings throughout the Gulf area. Poor liquidity and a variety of high profile de-listings– such as port operator DP World, Emaar Malls and Damac Properties– have actually dented financier belief recently.
In November, Dubai revealed strategies to reverse the pattern, looking for to “increase the total volume of its stock markets” to AED 3 trillion ($817 billion). The federal government stated it prepares to privatize 10 state-owned business, without calling particular organizations or setting a date for the listings.
Business park operator TECOM, energy Dubai Electricity and Water Authority (DEWA), roadway toll system Salik, and organizations within Emirates Group, consisting of dnata and commitment program Skywards, in addition to Dubai airport’s Duty Free have actually been reported amongst those being thought about for public deal.
News of the possible brand-new listings has actually sent out Dubai’s benchmark DFM Index up more than 11% given that the statement.
