Abu Dhabi Ports weighs IPO
25 Jul 2017 - 23:42
London/Dubai: Abu Dhabi Ports Co. is considering an initial public offering, joining a growing list of state entities in the United Arab Emirates seeking to sell shares, according to people familiar with the matter.
The government-run ports operator has met with investment banks in recent weeks and may decide on financial advisers soon, the people said, asking not to be identified as the information is private. The company could raise at least $1bn in a share sale on the local exchange, one of the people said.
No final decisions have been taken, and the company may decide against a listing, they said. A spokesman for Abu Dhabi Ports declined to comment.
Large state-owned companies in the Gulf are turning to equity markets to raise cash amid weak oil prices. Abu Dhabi National Oil Co. selected underwriters and advisers for an IPO of its gas stations unit, which may value the business at as much as $14bn. Emirates Global Aluminium PJSC is also planning to raise about $3bn through a stock sale.
They will join Saudi Arabia Oil Co., which is preparing what could be the largest-ever IPO as the kingdom takes steps to overhaul its economy.