UAE-based Massar Solutions, a market leader in fleet solutions, plans to sell 240 million shares in the company, amounting to 40 per cent of the share capital and to apply for listing of shares on Abu Dhabi Securities Exchange (ADX).

Khalaf Al Dhaheri, chairman of Massar, said: “I am delighted to announce our plan to list Massar on the ADX and look forward to this exciting new phase of our development. We are pleased to become the first mobility solutions provider in the UAE to go public and that UAE nationals will now be able to participate in the continued success that we have enjoyed over the past fifteen years.”

“This is a highly significant day in the history of our company. We have ambitious plans for the future of Massar and an IPO is the logical next step in this process.

“The IPO will raise our profile and comes at a time when our business is accelerating as we build upon our stable foundations in fleet solutions and vehicle rental to provide innovative supply chain solutions to our clients. We look forward to welcoming future investors as stakeholders, as we continue our long term growth trajectory,” he added.

Paul Greenwood, chief executive officer of Massar, said: “We recently refreshed our brand from Al Wathba to Massar, which means “path” in Arabic. This resonates with the fundamentals of our business, managing our customers’ mobile assets and setting them on the right path.”

“Everything we do is geared towards keeping cargo, cars and companies moving forward through our commitment to innovation and excellence and the IPO is the next step along our own path of sustainable growth,” he added.

Invest AD, and Abu Dhabi investment company and Abu Dhabi national Energy Company (Taqa) own 51 per cent and 49 per cent of the shares in Massar Solutions respectively and are selling 120 million shares each, a statement said.

The offer price is Dh2.40 ($0.65) per share.

According to the company statement, the offer shares will be allocated through two tranches:

•    The first tranche is open to individuals (natural persons) who are UAE nationals with a minimum subscription of 5,000 offer shares. The first tranche comprises a total of 48 million offer shares representing 20 per cent of the offer.

•    The second tranche is open to individuals (natural persons) who are UAE nationals, sole proprietorships and companies owned 100 per cent by UAE nationals, public bodies and authorities of the federal government of the UAE or any one of the Emirates, including the EIA pursuant to the UAE Council of Ministers’ Resolution No. 8 of 2006, with a minimum subscription of 1,001,000 offer shares. The second tranche comprises a total of 192 million offer shares representing 80 per cent of the offer.

Applicants who wish to apply for shares need to ensure that they have an up-to-date National Investor Number registered through ADX, the statement said.

Subscription for shares will open on January 11 and will close on January 25.

Massar was established in 1998 and currently owns and operates around 9,755 vehicles as well as managing a further fleet of 6,755 vehicles for third-party clients, it said, adding that it planned to increase this to 16,000 and 20,000 vehicles respectively over the next five years.

In the nine months to Sept. 30, it made a net profit of Dh64.9 million ($17.6 million) and generated revenues of Dh342.1 million ($93.1 million). – TradeArabia News Service & Reuters