M'Sharie to offer 40% stake to private investors on May 8

Dubai: M'Sharie, the fully owned private equity arm of Dubai Investments, said it will offer up to 40 per cent of its shares to Gulf investors in a private placement next month.

Thirty-five investors from the UAE and other Gulf countries have shown interest in acquiring a stake in the company, managing director Abdul Aziz Al Serkal told Gulf News.

"We will offer between 30 and 40 per cent to a maximum of 10 investors. We are looking for partners who can help in our expansion outside the UAE," he added.

The private placement will take place on May 8, and all legal formalities will be completed by the end of June, Al Serkal said.

M'Sharie's portfolio comprises 19 UAE-based companies, which mainly make products for the construction industry. These include laboratory furniture maker Labtech, piling and shoring work firm Stromek Emirates and aluminium fabricator Folcra Beach International.

The company focuses on the manufacturing, trading and service industries in the region for potential acquisitions. The private placement exercise is a step before an initial public offering (IPO) in two years.

Al Serkal said the company is keen to grow in large markets such as Saudi Arabia.

Khalid Bin Kalban, CEO, Dubai Investments told Gulf News in an interview in January that "we believe the value of M'Sharie at this point of time is Dh1.6 billion."

Dubai Investments is one of the largest publicly-traded holding companies in the UAE and reported a net profit of Dh1.5 billion in 2007.

Its revenues jumped 85 per cent to Dh3.7 billion on the back of strong property sales and return on equity investments.