Price range of US$5.00 - 6.60 per share

Offer size of up to 84.0 million shares resulting in up to 35% free float for FPI post IPO (including an over-allotment option of up to 12.0 million shares)

Indicative offer size (based on the mid-point of the price range) of approximately US$487million, including the over-allotment option

Final offer price expected to be announced on or around 30 April 2008

Dubai, 13 April 2008: Future Pipe Industries Group Limited, the Dubai based global leader in the development, manufacture and supply of fiberglass pipe systems, today published its preliminary prospectus as well as a summary document and application form for its UAE retail offer and announced an indicative price range of US$5.00 to US$6.60 per share for up to 35% of its shares in its initial public offering (IPO) on the Dubai International Financial Exchange (DIFX).

Up to 84.0 million shares, including an over-allotment option of up to 12.0 million shares, will be offered to investors globally.  The price of FPI's shares will be denominated in US dollars and will be priced through a global book building process with institutional investors.  Retail and institutional investors will pay the same price for FPI's shares, which is expected to be announced on or about 30 April 2008.   

FPI, founded by the Makhzoumi family, has become the global leader in the large diameter fiberglass pipe industry with operations spanning four continents and servicing clients in over 50 countries.  FPI has pioneered the use of fiberglass in the large diameter pipe market and provides pipe systems for some of the world's largest development projects including Ras Laffan Industrial City in Qatar and the Dubai World Central Airport. 

FPI highlights include:

  • FPI is the global leader in large diameter fiberglass pipe systems servicing the oil & gas, water distribution, infrastructure & municipal, industrial, petrochemical, and desalination & power markets;

  • FPI believes it has the world's most comprehensive portfolio of fiberglass pipe products, which enables it to provide fiberglass pipe solutions across most industry sectors;

  • FPI currently operates 11 factories and a global network of sales offices;

  • for the year ended 31 December, 2007, FPI's sales and EBITDA were approximately US$556.4 million and US$87.6 million, respectively. Sales derived from FPI's factories in the GCC in 2007 accounted for approximately US$422.5 million;

  • FPI's share of the global large diameter fiberglass pipe market for 2007 is estimated at 11.6%;

  • FPI  has a leading market position in the GCC where demand for large diameter fiberglass pipes is estimated to have grown annually by 16.5% between 2001 and 2006, exceeding the annual growth rate for global large diameter fiberglass pipes which grew at 12.1%; and

  • between 2005 and 2007 total group sales grew by 50.6%, primarily driven by strong growth throughout the GCC.     

The intention to float up to 35% of FPI was announced on 30 March 2008.   The IPO will be in the form of a sale of shares by Future Management Holdings S.A, the sole shareholder of FPI, which is wholly-owned by the Makhzoumi family.  Future Management Holdings S.A. will retain majority ownership of the company.

Commenting on the announcement, founder and Chairman of FPI, Fouad Makhzoumi said:

"FPI has come a long way since we founded the company in 1984.  I believe this IPO will be one of the most important milestones in our history and, as a Dubai based company that has grown with the Emirate, I am delighted that through this offer, we will be able to share our exciting future with investors from the UAE and the GCC."        

President and CEO of FPI, Rami Makhzoumi remarked:

"Pipes are the veins and arteries of civilization, delivering essential resources such as water, oil and gas to the world.  Governments and nations simply do not have a choice but to invest in pipe systems.  The world pipe market in 2006 was estimated to be worth over US$120 billion, 80% of which can be addressed by fiberglass as a pipe material.  Fiberglass currently accounts for only 5% of that addressable market and this is where FPI's long-term growth opportunity lies." 

"Core to our strategy, therefore, is our ability not only to continue to grow FPI's share of the world fiberglass pipe market but also to convert customers and end users to fiberglass usage.  Our mission is to convert the world to fiberglass.  We aim to achieve long-term growth by enhancing our market share, through organic and non-organic growth, continuing to position fiberglass as a superior alternative to other, more traditional, pipe materials and growing the addressable market through further investment in technology, research and development."

For further information on the retail offer process, log on to www.uae-ipo.com                            

About FPI
Future Pipe Industries Group (FPI) is the global leader in the large diameter fiberglass pipe industry, developing, manufacturing and supplying fiberglass pipe systems for customers across the world.  Headquartered in Dubai, FPI's operations include 11 factories and a global network of sales offices across four continents.

FPI serves customers in over 50 countries across the oil & gas, infrastructure & municipal, water distribution, industrial, petrochemical and desalination & power markets. FPI's customers are generally companies engaged in infrastructure and construction projects such as EPC contractors and general infrastructure building contractors.  The end-users of FPI's pipe systems include governments, municipalities, other state-owned enterprises, oil & gas exploration and production companies and power generation companies.

Enquiries:
FPI Investor Relations
Hafiz Ladha, Chief of Corporate and Strategic Affairs
Tel: +971 4 210 1974 

Bell Pottinger
Tom Mollo (Dubai)                  
Tel: +971 (0) 50 550 4203  
Sarah Williams (London)
Tel: +44 7904 932904

Deutsche Bank AG, London Branch
Christopher Laing, Managing Director
Tel: +44 207 545 8000
Patrick Frowein, Managing Director
Tel: +44 207 545 8000
Claudio Villa, Director
Tel: +44 207 545 8000

Mashreq Bank, PSC                                                                                     
Avneesh Mishra, Head of Investment Services
Tel: +971 4 363 2415

© Press Release 2008