Mawarid to float tech units after private stake sale
DUBAI, March 4, 2016
Dubai-based Mawarid Finance has mandated HSBC, ADS Securities and Mena Corp to sell a stake to private investors and subsequently list a new company combining three of its technology investments, four sources aware of the matter said.
Should the listing on the Dubai Financial Market succeed, it would be the first Gulf technology firm to be floated, giving investors much-needed diversification on local bourses currently dominated by property developers, banks and energy-related companies.
Mawarid, a sharia-compliant finance, investment and advisory firm, is combining the three technology companies within its portfolio: systems developer Falcon Eye Technology, technology service provider Technical Art Concepts and card payment processor QuickNet.
It didn't respond to a request for comment.
Mawarid began sounding out investors at the start of the year about raising Dh150 million ($41 million) during an investment round prior to the initial public offering, according to two of the sources, who spoke on condition of anonymity as the information isn't public.
The combined firm will then be floated in Dubai, with shares offered at a fixed price of Dh1 each for a market value of Dh840 million, one of the sources added.
The sources didn't say when the listing would take place, although it is unlikely to be in the near term as the pre-flotation stake sale is expected to take a number of months at least.
Markets in the United Arab Emirates are in the midst of a drought of new listings, with none in Dubai since the end of 2014, as volatile market conditions and concerns over the impact of lower oil prices on local economies reduce investor interest in new stock offerings and the valuations which companies can achieve. - Reuters
