Dubai: UAE’s vehicle rental firm Massar Solutions said on Monday it plans to raise Dh576 million by selling 240 million shares or 40 per cent of the issued share capital.
The company said in a statement, it plans to sell each share at Dh2.40 each, and subscription for shares will open on January 11, and will close on January 25. This would value the company at Dh1.44 billion or 16.6x earnings annualising the nine months results, said Jaap Meijer, managing director at Aarqaam Capital.
The offer proceeds will be paid to the Selling Shareholders, which are Invest AD and National Energy Company (TAQA). Invest AD and TAQA own 51 per cent and 49 per cent of the shares respectively and are selling 120 million offer shares each.
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.
For the nine month period ended September 2014, Massar had net profit, revenue, and total assets of Dh64.9 million, Dh342.1 million, and Dh1.055 billion respectively.