Transportation solutions service provider Aramex has decided to approach the market with an initial public offering (IPO).

Shuaa Capital and Abu Dhabi-based National Investor have been given the mandate to run the issue, which is expected to be upwards of Dh550.5 million ($150 million).

Sources at Shuaa Capital told Gulf News the timing and size of the issue are yet to be finalised.

The managers will then approach the Ministry of Economy and Commerce for its approval.

Aramex, which employs more than 3,000 people and operates an international network that includes strategic alliances covering five continents, is planning to divest 75 per cent of its shares to be subscribed by public, they added.

When contacted, Fadi Ghandour, president and chief executive officer, stated: “We do not have any updates on our IPO at this stage.”

Earlier there were reports that the company would come out with a public offering and would be listed on any of the regional exchanges.

In early 2002, Abraaj Capital bought a substantial stake in Aramex through its Cayman registered structured buyout fund. Following this, Aramex which was listed on Nasdaq — to be the first Nasdaq-listed company from the Arab world — was delisted from that US stock exchange.

The UAE has been witnessing a series of IPOs recently, and all these issues have been ovsersubscribed many times.

Many other firms have also approached the ministry as the first step towards applying for the approval for IPO and the value of the shares to be sold to the public.