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CAFU, the Dubai-based fuel delivery operator, is mulling a stake sale as the company looks to raise funds.
According to a Bloomberg report, the fuel delivery service is reportedly collaborating with financial advisory and asset management firm Lazard, Inc for the stake sale. Lazard established its offices in Abu Dhabi, earlier this month in a bid to deepen its presence in the MENA region.
Founded in 2018 by Emirati entrepreneur Rashid Al Ghurair, CAFU delivers fuel at gas station prices and has expanded to Canada.
News of the stake sale came shortly after CAFU announced it was rolling out delivery charges, which had been suspended in the aftermath of COVID-19.
Diverse IPO offering
According to Vijay Valecha, Chief Investment Officer, Century Financial, a possible CAFU stake sale would bring a diverse offering to the UAE’s IPO pipeline.
“For new entrants to the UAE and Gulf digital tech startup space, CAFU’s business model idea has served as a benchmark for best integrating and evolving traditional business models into the new online and digital tech space,” Valecha said.
Globally, CAFU’s business model has served well in several countries, with Valecha calling North America as the biggest market for this segment with services including Yoshi, Gaston, Ez Fill, Booster & Fuelster, along with American oil companies Shell and Mobil having also introduced their services in this segment.
For the UAE, a possible listing by CAFU tracks with analyst data that have pointed out a growing theme around technology in the short to mid-term IPO pipeline.
(Writing by Bindu Rai, editing by Seban Scaria)
