Massar Solutions eyes investor response for IPO

Dubai: UAE’s vehicle rental firm Massar Solutions, which opened its Dh576 million IPO for subscription on Sunday, anxiously awaiting investor’s response for its primary offering, which is launching just after last month’s volatile swings.

The subscription for the IPO, the first flotation on Abu Dhabi’s stock market since 2011, will enter its second day on Tuesday and continue till January 25. The company is offering 240 million shares, or 40 per cent of its share capital, at Dh2.40 each.

Massar is 51 per cent owned by Abu Dhabi Investment Co. and 49 per cent by Abu Dhabi National Energy Co. Both companies are selling 120 million shares each.

“A lot of people are afraid of new IPO’s. They would rather prefer to buy cheap stocks available in the market after recent correction,” said Osama Al Ashri, from the Society of Technical Analysts.

Amanat and Dubai Parks and Resorts traded below their listing price on the first day of trade in a market that was clouded by plunging crude oil prices.

Meanwhile, the capital markets regulator said many companies in the United Arab Emirates have decided to hold off on initial public offers of shares because of the weakness of stock markets.

About Massar’s IPO, Abdullah Salim al-Turifi, chief executive of the Securities and Commodities Authority said.

“This is very small and it is an existing company and has performance and their profit is good, so I think most of their shares will go to institutions and the public will buy,” he added.