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Dubai: Drake & Scull International (DSI), a UAE-based mechanical, electrical and plumbing (MEP) contractor, on Thursday said it will raise Dh1.19 billion to fund expansion by offering 55 per cent shares to UAE and non-UAE nationals through an initial public offering (IPO).
"DSI intends to use the proceeds from the offering to enhance its leadership position in the UAE and expand its activities in the Mena region through a combination of organic growth and strategic acquisitions," the company said in a statement.
"DSI is currently evaluating a number of companies as potential acquisitions that would extend its geographical presence in the leading construction markets in the Mena region. The company is also planning to secure access to raw materials by acquiring highly reputable supply companies as part of its vertical integration strategy."
Al Mal Capital and HSBC Middle East are the joint lead managers for the IPO. Share application forms will be available from any branch of the following receiving banks: Emirates-NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Bank, Dubai Islamic Bank, First Gulf Bank, National Bank of Abu Dhabi, mashreq, Noor Islamic Bank and Union National Bank. Emirates NBD is the lead receiving bank.
Listing
Company officials said, it will list shares on the Dubai Financial Market (DFM).
DSI is a UAE-based public joint stock company, under incorporation and is one of the oldest and most experienced MEP contracting and civil contracting firms in the UAE. Drake & Scull owns directly and indirectly 100 per cent of Drake & Scull International, incorporated in Abu Dhabi (Drake & Scull Abu Dhabi) and 80 per cent of Test Contracting Company - a civil contracting company.
"DSI is offering 1,197,777,778 shares, which represents 55 per cent of the company, to UAE and non-UAE individuals and institutional subscribers and aims to raise in excess of Dh1.198 billion [more than $325 million]," the statement said.
Each share will be priced at Dh1 plus an offering cost of Dh0.02 per share, with a minimum subscription of 20,000 shares. The offering will commence on July 8 and close on July 17.
"Following the offering, DSI will be incorporated and will then seek to list its shares on the DFM. Post-incorporation, DSI will be capitalised at over Dh2.178 billion. The company aims to list on the Dubai Financial Market in the third quarter of 2008," it said.
Khaldoun Rashid Tabari, chief executive of DSI, said: "The UAE real estate sector is growing strongly and as a complete end-to-end MEP and civil contractor, Drake & Scull plays an integral part in many of the country's most prestigious development projects.
"Our leading market position, strong brand recognition, proven financial and management strength, successful track record of delivering complex projects to demanding quality, time and budget requirements means that we are well placed to capitalise on future growth opportunities."
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