Thursday, Apr 17, 2008
(This story was originally published on Wednesday.)
DUBAI (Zawya Dow Jones)--Future Pipe Industries Group Ltd., a UAE-based maker pf fiberglass pipes, hopes to attract investors from Europe and the U.S. to its $487 million initial offering, the company's chief executive officer said.
Future Pipe Industries, which started off the roadshow for its 35% IPO in Dubai on Sunday, will market its shares sale in Europe next week, followed by few days in the US, Rami Makhzoumi told Zawya Dow Jones.
"We've sensed keen interest from European and U.S. investors," Makhzoumi said.
Future Pipe Industries is selling 35% of its stock, equivalent to 84 million shares, through an initial public offering and plans to list the company on the Dubai International Financial Exchange (DIFX).
Rising oil and energy prices have also supported demand for pipe systems as well as strong economic growth and significant recent investments in the oil & gas market over the past few years.
The company set the price range for its 35% initial public offering at $5.00 to $6.60 a share.
The securities will be issued in US dollars and priced through a book building process, which will set a market price before listing. Deutsche Bank's London branch is the sole global coordinator and bookrunner. Citigroup and mashreq are the co-lead managers.
Plans to list shares on the DIFX are seen by the company as a move towards globalization. FPI has more than doubled its sales in the last two years, from $245.4 million in 2005 to $556.4 million in 2007.
Greater spending on oil exploration and production, as well as increased exploration of non-conventional sources which typically required more complex piping systems, has made oil & gas a growing market and ensures a continued demand for pipe systems.
-By Mirna Sleiman, Dow Jones Newswires, 0097143644966, mirna.sleiman@dowjones.com
Copyright (c) 2008 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
17-04-08 0422GMT
