Abu Dhabi-Tuesday 20th of January  2015 :

Abu Dhabi Securities Exchange (ADX) hosted yester day Massar Solutions meeting with ADX licensed brokers in the exchange's main offices in Abu Dhabi.  During the meeting, attended by Massar's CEO Paul Greenwood and some of the company's senior staff as well as ADX senior management, Massar delivered a presentation on the company's strategies, their financial results, and their future plans. 

Earlier this month, Massar announced that it will sell 40% of its shares on the Abu Dhabi Securities Exchange (ADX). The expected listing date is February 18, 2015. The company plans to sell 240 million ordinary shares at AED2.4 each between January 11 and 25, which would value the listing at AED576 million ($156.8 million).  

The IPO will only be open to United Arab Emirates (UAE) nationals, with 20% of the floatation retained for retail investors. The other 80% will also be available to retail investors and fully owned government institutions and UAE companies.

Massar Solutions will be the first Public Joint Stock Company to launch IPO subscription through ADX eKtetab electronic IPO platform.  ADX-eKtetab is specifically designed for building robust eServices Applications for Stock Exchanges.

ADX-eKtetab will provide secure real-time Subscription Processing Management Services to Issuers, Lead Receiving Banks and any number of Receiving Banks as part of its initial launch. Complete workflow life cycle processes, from subscription information acceptance through Allocation and Refunds, are automated in real-time with the use of ADX-eKtetab and the Issuer can be listed within hours of the close of the IPO.

Paul Greenwood, Chief Executive Officer of Massar commented: "We would like to thank the Abu Dhabi Securities Exchange for their kind hospitality and for giving us the opportunity to present to their members. We are very excited by the prospect of being listed on the ADX, which would make us the first company in our sector to have secured such an important accolade. We are looking forward to a long and happy association."

Dr. Mahdi Mattar of Evolvence Capital added: "We were pleased to meet Massar's management team and to have the opportunity to understand their business. We were very impressed with what we heard and it is clear that Massar is an attractive business with a strong market position and excellent prospects. We are confident that investors will welcome the opportunity to takes shares in such a successful company."

Mr Tariq Qaqish, Head of Asset Management at Almal Capital further commented: "We very much enjoyed meeting the Massar team.  It is clear that they have a thorough grip on their business, a clear understanding of their market and a compelling strategy to achieve further growth. The presentation was a very worthwhile exercise, because they made a very convincing case to their audience, all of whom I am sure were encouraged by what they heard.  We are certain that Massar will be an excellent addition to the Abu Dhabi Securities Exchange."

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About Abu Dhabi Securities Exchange;
The Abu Dhabi Securities Exchange (ADX) was established by Local Law No. (3) Of the year 2000, the provisions of which make the Exchange a legal entity with autonomous status, independent finance and management. The law also provides the ADX with the necessary supervisory and executive powers to exercise its functions. ADX began operations on November 15th 2000.

In alignment with the Abu Dhabi Government's Economic Vision 2030, ADX aspires to become the leading stock exchange in the region by leading the development of the UAE capital market through a well-regulated marketplace in a lawful environment that ensures integrity, transparency and disclosure.

ADX has 67 listed securities.  Those securities include 65 public joint stock companies, 1 Exchange Traded Fund (ETF) and 1 convertible bond.  The ADX had a total market capitalization of AED 511 billion as of August 2014.  The Exchange has signed a number of agreements with major financial institutions to provide custody services, including the National Bank of Abu Dhabi (NBAD), HSBC, Standard Chartered, Deutsche Bank, and Citi.

In 2013, the stock exchanges of the U.A.E Markets were upgraded to 'Emerging Market' status by both MSCI index (Morgan Stanley Capital International) and S&P Dow Jones, thus greatly increasing the likelihood of inward global investment flows.

For further enquiries, please contact:
Adel Al Dhaheri
Manger of Media Relations
Abu Dhabi Securities Exchange
Media Department
Email: adelm@adx.ae
Telephone: 02-6128716

Abdulrahman Al Khateeb
Communication Officer
Abu Dhabi Securities Exchange
Email: alkhateeba@adx.ae
Telephone: 02-6128774

About Massar
Massar is a public joint stock company established and operating from 1998 in the Emirate of Abu Dhabi, UAE, and today, is a market leader in fleet solutions, vehicle rental and supply chain solutions. 

The Company's current shareholders are Abu Dhabi Investment Company ("Invest AD") and Abu Dhabi National Energy Company P.J.S.C ("TAQA") (together the "Selling Shareholders"). Invest AD and TAQA own 51% and 49% of the existing shares respectively.

The Company provides a comprehensive range of services across three core divisions: fleet solutions, vehicle rental services, and supply chain solutions to government, semi-government and private sector clients operating in the UAE's industrial and commercial sectors.

Massar business model combines the core stable income from the fleet solutions and vehicle rental divisions - generated from short-to-medium term lease, fleet management and rental contracts - with targeted growth from the supply chain solutions operations, which was established in 2014 to address the growing demand for outsourced logistics services in the UAE and GCC region.

The Company has secured a strong market position by leveraging its competitive advantages, including its comprehensive service offering and deep market knowledge, efficient management of the asset lifecycle, strong purchasing power, leading technology and well-established relationships with governmental clients.

Massar currently owns and operates a fleet of approximately 9,755 vehicles and manages a further fleet of approximately 6,755 for third party clients. It is diversified across all passenger and commercial vehicle classes, including buses, light/medium/heavy commercial vehicles, and light passenger vehicles. The Company plans to increase its fleet and managed vehicles to 16,000 and 20,000 units respectively over the next five years.

Massar's financial year starts on 1 January and ends on 31 December each year. For the nine month period ended 30 September 2014, the Company had net profit, revenue, and total assets of AED 64.9 million, AED 342.1 million, and AED 1,055.5 million respectively. For financial years ended 31 December 2011, 2012, and 2013, net profit was AED 93.9 million, AED 111.0 million, and 129.4 million respectively. The Company achieved strong net profit margins for the full financial years, exceeding 20%.

Massar has a clear strategic direction for its future growth:

Fleet Solutions: As the foundation of the Company's stable profits, this division will consolidate its service offerings and also grow its suite of value-add products. The Company is focused on expanding its brand and presence into Dubai and the Northern Emirates and diversify its customer base by focusing on revenue from the private sector.

Vehicle Rental: The Company is seeking to build on its existing platform through the launch of new products, such as a private usage-based consumer lease product in partnership with Arvento; in addition to growing the Payless Car Rental brand in Dubai and the Northern Emirates with future branch openings planned in Dubai, Sharjah and Ras Al Khaimah.

Supply Chain Solutions: Established to fulfil the regional need for outsourced logistics and after identifying opportunities in the Fast Moving Consumer Goods ("FMCG") sector, is foreseen to be the largest contributor to future growth through increasing the operational units from 150 to 1,000 units, and investment into additional warehouse capacity and services.

© Press Release 2015