Dubai: Massar Solutions said on Tuesday it has decided to postpone its Dh576 million initial public offering to UAE investors and its subsequent listing on the Abu Dhabi Securities Exchange.
The company said it received insufficient levels of applications within the offer period on account of the continued volatility in oil prices, which in turn had an impact on the regional and international capital markets.
Therefore the shareholders committee decided to defer the IPO until such time as oil prices are more stable.
“We are making excellent commercial progress, especially in the new supply chain services market. We remain very confident about our prospects,” said Paul Greenwood, Chief Executive Officer of Massar.
“We can also take comfort that the enhanced brand awareness resulting from the publicity surrounding the IPO is already paying dividends in the form of higher levels of engagement with potential new customers,” said Greenwood.
Those investors who completed their applications for shares will be immediately refunded through the lead receiving banks, the company added.
Massar currently owns and operates a fleet of about 9,755 vehicles and manages a further fleet of about 6,755 for third party clients. The Company plans to increase its fleet and managed vehicles to 16,000 and 20,000 units respectively over the next five years.