Dubai logistics company Tristar will sell up to 24 percent of its share capital in an initial public offering (IPO) in April, with the intention to raise up to $160 million of gross primary proceeds.
Following the IPO, Tristar plans to list its stock on the Dubai Financial Market (DFM) next month, subject to market conditions and regulatory approvals, the company said in a statement.
Tristar is co-owned by Kuwait's Agility, Kuwait's Gulf Investment Corporation (GIC) and its chief executive and founder, Eugene Mayne, according to its website.
The offering is expected to comprise 199,000,000 new shares issued by Tristar as well as up to 88,760,000 existing shares to be sold by shareholders.
Existing shares are being offered by Agility Tristar SPV Ltd (of which Agility Public Warehousing Company is the sole owner), Star Holdings Ltd (of which Gulf Investment Corporation is the sole owner), and Diamond SPV Limited (of which Eugene Mayne is the sole ultimate beneficial owner) who currently own 65.12 percent, 19.61 percent, and 15.27 percent shares respectively.
The firm expects to receive between $120 million and $160 million in gross primary proceeds.
The shares will be listed on the DFM in April subject to market conditions and regulatory approvals.
The offering is made to qualified investors with 5 percent reserved for the Emirates Investment Authority.
The offering is expected to be declared Sharia compliant, subject to confirmation by the Sharia Supervision Committee. A portion of the proceeds will be used to repay around 197 million dirhams in loans and payables due to related parties.
The company is a liquid logistics provider carrying petroleum and industrial chemicals. Its clients include Abu Dhabi National Oil Company, Royal Dutch Shell, BP, Total, DOW, Emirates National Oil Company.
For 2020, Tristar reported an EBITDA of $103.6 million and consolidated revenue of $453.4 million.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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