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Dubai's Tristar launches IPO, targets valuation of up to Dh3 billion

Dubai: Dubai-based logistics company Tristar Transport launched its initial public offering (IPO) on Sunday, targeting a valuation of up to Dh3.24 billion.

Tristar said its offering comprises a base case of a minimum of 239 million ordinary shares, representing a transaction size of 20 per cent of the total issued ordinary shares in the capital of Tristar, with a maximum of 287 million ordinary shares, which will represent a transaction size of up to 24 per cent.

The company has set a price range of Dh2.20 – Dh2.70 per share, resulting in a market capitalisation in the range of Dh2.64 billion to Dh3.24 billion. Proceeds from the primary component will be in the range of Dh438 million to Dh537 million and the secondary component will be between Dh90 million and Dh240 million.

The offering, which is being made available to qualified investors only, starts today and will close on April 15, 2021 with expected listing of offer shares on the DFM expected to take place on April 22, 2021.

This is subject to market conditions and obtaining relevant regulatory approvals in the UAE, including from the SCA.

"Our business has achieved considerable success over the last 23 years delivering revenues of $453.4 million, and EBITDA of $103.6 million for the year ended 31 December 2020," said Eugene Mayne, Group CEO of Tristar.

"Our main operating metrics for the first quarter of 2021 are trending positively, and so as we look ahead, we see significant opportunities to continue to drive steady and sustained growth as we expand our geographic reach and support services whilst continuing to innovate and shape the logistics industry, ” he added.