Gulf Navigation Holding recently announced plans to increase its capital through an initial public offering (IPO) to reach AED1bn.
According to a press release, the company plans to increase its capital by AED448,333,334 in order to make the issued and paid up share capital to be AED1bn, distributed over 1,000,000,000 shares at a par value of AED1 per share without issuance premium.
The IPO is expected to be launched in the first quarter of this year.
Plans to issue an IPO came after a comprehensive review of the company’s strategic expansion plans. The company plans to double its fleet size to 20 vessels by 2020 and become a one-stop-shop provider of shipping and maritime services globally.
‘The IPO process will allow investors to benefit from the continued growth and the steady increase in profits which will be reflected positively on shareholders,’ the release said.
Khamis Juma Buamim, board member, managing director and group CEO of Gulf Navigation Holding, said, “Today, we are ready to make a new move in our capabilities, as we are willing to increase the size of our fleet by 20 vessels by 2020 in order to keep up with the growing demand to ship petroleum and petrochemical products regionally. Many GCC countries have allocated more than US$140bn over the next decade to expand their production. In addition, many of the leading petrochemical companies announced plans to increase their production capacity, including Saudi Aramco, which is willing to increase its oil refining capacity from 2.9mn to 3.3mn barrels per day by 2020. We are confident that we have all the required expertise to win a large share of this market, and we plan to be ready by having the capabilities and the fleet size sufficient to keep up with this expansion. We promise our investors to achieve more growth and profitability for their investments based on the strategic plan set by the company’s team of advisors.”
According to the release, the company plans to become one of the largest maritime services provider in the region and increase its revenues by 300% by 2021.
The company had previously announced to introduce $250 million Islamic Sukuk investment that will be provided on stages, which will provide an additional continuous cash flow to enhance the group's efficiency in expanding its projects.