UAE fleet specialist Massar to go public
Vehicle management business Massar is said to be contemplating a Dh1bn (€223m) initial public offering (IPO), a sign that the United Arab Emirates is back on track following recent volatility.
Massar, which launched in 1999 as the vehicle management arm of Abu Dhabi's Water and Electricity Authority, boasts more than 15,000 vehicles and annual sales of almost Dh500m (€111m).
The company also operates a a supply chain management division and has a vehicle rental business under the Payless franchise of Avis Budget Group.
Massar is owned by energy group Taqa, which has 49% shareholding, and Invest AD which has the rest.
It's said that the IPO – which is reportedly heading for the Abu Dhabi Securities Exchange (ADX) in early 2015 – will offer up to 30% of the existing company in the form of sell-down shares. No new revenues are sought and purchase will be restricted to UAE nationals.
Massar will be the first IPO to test the market's thirst for new listings since investors backed away from the ADX; following heavy fluctuations in oil price. | 30/12/2014 | Ally Millar