Dubai: UAE-based Tristar Group says it intends to list its company within three to five years, following the issuance of $100 million worth of fresh shares earlier this week.
On Sunday, the logistics company said that it had successfully sold an equity stake to Kuwait-based Gulf Investment Corporation (GIC) by issuing $100 million in new shares to GIC.
The move, which values the company at around $500 million, was intended to both prepare the company for a listing, whilst funding Tristar’s continued expansion.
“We eventually want to list our company, and a strategic shareholder at this point will be the first step towards that,” said Eugene Mayne, the company’s founder, in a telephone interview with Gulf News.
As a result of GIC’s investment in Tristar, the company will now be owned by Agility, the Kuwaiti logistics giant, GIC and Mayne himself, who says he will become a minority shareholder.
“GIC purchased around 20 per cent of the company. Agility will remain the majority shareholder,” Mayne said.
The founder and CEO says he is open to the possibility of bringing on board another investor between now and the listing.
“We’ll look at and keep the door open, to continue building our book ahead of the listing,” he said.
According to Mayne, the money will be used to invest in Tristar’s shipping business.
Shipping is generally a capital intensive operation, and Mayne says that the fresh funds will help his company to build its growing shipping business.
“Growing organically is getting more challenging: there is pressure. Our clients are major multinational corporations, and since oil prices have decreased people have looked to cut costs,” he said.
As a result, “We can’t maximise margins, so we have to look at new opportunities and new markets,” Mayne added.
These new markets, needed to sustain growth, might possibly include India, he said.
Tristar will now be operated under a new company structure in DIFC with the name Tristar Holdings Limited. All Tristar activities will be held under the DIFC holding.
Under the terms of the agreement, Mayne, who has budgeted for a $60 to $70 barrel of oil in 2018, will continue to lead Tristar Holdings as Group CEO.
