Cranes stand at the quayside at Khalifa Port on April 26, 2012.
Gabriela Maj | Bloomberg | Getty Pictures
DUBAI, United Arab Emirates — Stocks in Abu Dhabi Ports Team surged 15% in keeping with percentage on its debut on Tuesday, after elevating 4 billion dirhams ($1.1 billion) in a percentage sale, marking the primary in a sequence of extremely expected listings for the United Arab Emirates this yr.
Stocks had been buying and selling at 3.68 dirhams ($1) in a while after the ten:00 a.m. Abu Dhabi marketplace open, up from their unique be offering worth of three.2 dirhams.
Abu Dhabi Ports, now buying and selling at the Abu Dhabi Securities Trade (ADX) as ADPORTS, operates 10 ports within the UAE, a terminal in Guinea and a number of other logistics and business zones. Its flagship Khalifa Port in Abu Dhabi was once the primary deep-water and semi-automated container port within the GCC area.
“The money proceeds from this number one issuance will likely be used to fund the corporate’s natural and inorganic enlargement plans, permitting the corporate to boost up its native and world growth plans,” the corporate stated in its investor submitting.
Abu Dhabi Ports is owned through ADQ, the UAE’s 3rd greatest sovereign wealth fund. ADQ will stay the bulk shareholder with a 75.44% stake within the corporate. ADQ additionally transferred 22.32% stake in Aramex and a ten% stake within the Nationwide Marine Dredging Corporate to Abu Dhabi Ports previous to the sale, consistent with filings.
Reuters additionally reported that Abu Dhabi conglomerate IHC took a 7.4 % stake in Abu Dhabi Ports forward of the checklist via its subsidiary corporate Al Seer Marine, which purchased 375 million stocks value 1.2 billion dirhams ($326.74 million) in general.
List spree
The most recent checklist comes amid a privatization push now underway within the United Arab Emirates.
ADX has observed a surge of recent listings up to now yr, with the Abu Dhabi Nationwide Oil Corporate (ADNOC), state investor Mubadala and IHC enterprise quite a few public choices, serving to to make the ADX top-of-the-line appearing regional markets final yr.
ADNOC Drilling raised $1.1 billion for its IPO in October final yr, the emirate’s largest ever checklist. Rival Saudi Arabia has additionally observed document hobby, with the IPO of bourse operator Tadawul Team elevating greater than $1 billion. It follows the $1.2 billion drift of renewable power software ACWA Energy World, which was once the Kingdom’s largest because the IPO of Aramco in 2019.
The efficiency is against this to Dubai, the place capital markets have trailed friends in each Abu Dhabi and Riyadh, regardless of renewed investor urge for food around the Gulf area. Deficient liquidity and quite a few top profile de-listings — comparable to port operator DP Global, Emaar Department stores and Damac Homes — have dented investor sentiment in recent times.
In November, Dubai introduced plans to opposite the rage, in search of to “build up the whole quantity of its inventory markets” to AED 3 trillion ($817 billion). The federal government stated it plans to denationalise 10 state-owned corporations, with out naming explicit companies or atmosphere a date for the listings.
Industry park operator TECOM, software Dubai Electrical energy and Water Authority (DEWA), street toll gadget Salik, and companies inside Emirates Team, together with dnata and loyalty program Skywards, in addition to Dubai airport’s Responsibility Unfastened were rumored amongst the ones being regarded as for public be offering.
Information of the possible new listings has despatched Dubai’s benchmark DFM Index up greater than 11% because the announcement.