Dubai Investment mulls IPOs for three units

DUBAI - Investment Company has plans to take three of its subsidiaries to the market through an initial public offering (IPO) this year. The companies lined up for IPO are Emirates Building Systems Company, Dubai Investment Park Development and M'Shaire .

By Babu Das Augustine

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Published: Tue 20 May 2003, 12:16 PM

Last updated: Wed 1 Apr 2015, 9:18 PM

Khalid J Kalban, Managing Director and Chief Executive Officer of the company said: "In principle we are ready to offer shares in these companies to the public sometime during the current financial year. But the timing of these issues, their sizes and pricing are yet to be worked out."

Dubai Investments hold 100 per stakes in Dubai Investment Park Development and M'Shaire, respectively, while it's shareholding in Emirates Building Systems is 51 per cent. The remaining 49 per cent is held by Zeez Klim, a Dubai-based strategic investor.

Emirates Building Systems is involved in production of pre-engineered steel for the construction industry. With a capital base of Dh30 million it's turnover last year was more than Dh100 million. Dubai Investments Park Development Company is engaged in planning, development and setting up of the investment park and generates rental incomes. On a long term basis the company estimates 3.7 per cent growth in its annual earnings.

M'shaire, primarily an investment company has invested in two subsidiaries holding 60 per cent share in each, namely Emirates Extrusion Factory and Gulf Printing and Publishing. The company also has an investment of 30 per cent in Lite-Tech Factory.

"All these companies are successful and profit making ventures with competent managements. Their performance track records will be a major factor in arriving at their valuation and pricing," Kalban said.

The dilution of stakes in Emirates Building Systems resulting from IPO will be proportional for both the partners in the company. Dubai Investments is also open to the idea of listing its subsidiaries on the Dubai International Financial Centre.

"We are open to listing on any exchange and the decision will be arrived at after evaluating the relative merits and what will be of maximum benefit to the shareholders," Kalban said.

In addition to the above subsidiaries Dubai Investments have other subsidiaries such as Emirates Glass, Marmum Dairy Farm, United Sales Partners, Global Pharma The Edible Oil Company and Gulf Venture Capital. Last year, Dubai Investments had raised its stakes in Emirates Glass to 100 per cent by acquiring 25.5 per cent shares held by Thani Investments, a strategic partner. In Global Pharma and The Edible Oil Company, Dubai Investments holds 65 per cent and 70 per cent stakes respectively while the others are 100 per cent subsidiaries.

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