Gulf Navigation plans IPO to increase share capital

03/01/2018 05:52 AST

Gulf Navigation Holding has announced plans to increase its share capital by Dh448 million ($121.97 million) to reach Dh1 billion ($272 million) through the issue of an initial public offering (IPO).

The share capital of the company will be distributed over one billion shares at a par value of Dh1 per share. There will be no premium for the IPO shares.

The IPO is expected to be launched in the first quarter of this year. It will contribute towards achieving continuous financial prosperity of the company and support the company's expansion plans, which will lead to more profitability, a statement said.

The capital increase followed a comprehensive review of the company's strategic expansion plan that aimed at enhancing its competitiveness, it added.

Meanwhile, the value of the company's assets increased by 12 per cent in 2017, approximately Dh117 million ($32 million), in comparison with 2016.

The board of directors considered that increasing the capital is important to provide funds for the group's previously announced strategic development plans, including its intention to double its fleet size to 20 vessels by 2020, the statement said.

This expansion will transform the company into a one-stop-shop provider of shipping and maritime services globally, it said.

The IPO process will allow investors to benefit from the continued growth and the steady increase in profits, the statement added.

Khamis Juma Buamim, board member, managing director and group CEO, said: "Since July 2016, when we launched our new strategy under the slogan 'A broad vision to a new horizon', we have continued to expand and in a short time we have been able to accomplish strategic partnerships that contributed to the value of our shares to increase by 500 per cent."

He added: "Today, we are ready to make a new move in our capabilities, as we are willing to increase the size of our fleet to 20 vessels by 2020 in order to keep up with the growing demand to ship petroleum and petrochemical products regionally."

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