2 March 2005
ABU DHABI --Arab International Logistics Company (AILC), which is going to offer Dh1 billion IPO to the UAE nationals as well as expatriates from March 3-12, said it has ambitious plans to acquire companies in the fast growing logistics industry.
"Logistics business is growing at a phenomenally high rate of 25 per cent per annum not only in the UAE but in the Gulf region, comparing with just a single-digit growth rate monitored in the West. The new company would like to capitalise this huge potential by aggressively entering into the domestic as well as regional market by offering different services," said a company official.
There are tremendous opportunities in the areas of domestic and international express services, freight forwarding, ware housing, cargo handling and allied services, as the Gulf and the Middle East market are offering exciting opportunities.
AILC would be working as a holding company focusing on the logistics industry business creating a network of companies across the region.
Even the before the launch of the IPO, a large number of high net worth individuals from Gulf and Middle East have shown their interest in subscribing to the offer making it one of the successful floatation.
Share analysts see the IPO massively oversubscribed with the huge interest of expatriate community who will have an opportunity to take part in the investment activity after a long period.
AILC is offering 550 million shares out of 1 billion share to the general public while the management has retained a substantial chunk of 41 per cent with itself.
Share applicants can apply for a minimum of 25,000 shares.
The National Investors is acting as a financial adviser as well as lead arranger while the Shuaa capital is the book-runner.
The countrywide branch network of ADCB, ADIB, Finance House, Emirates International Bank, Mashriq Bank Dubai Bank, Investbank will receive the share applications.
In the kerb market Dh1 value share is being quoted at Dh2.
BY HASEEB HAIDER
© Khaleej Times 2005
