Gulf Marine Services, the Abu Dhabi oil equipment operator, is targeting a foreign listing next year that could value the company at up to US$500 million.
The region's biggest owner of jack-up barges - rigs that can move on their own and service either an oilfield or a wind turbine - is meeting with investment banks and aims to make a final decision this week, said Duncan Anderson,the chief executive. GMS is 79 per cent owned by Gulf Capital, the local private equity firm.
"We're choosing, but we'll probably go that way to get a listing because we've got too big for our peers for a trade sale," he said in an interview at the company's headquarters in Mussafah. "The scale we've got to very much lends itself to a listing and we're looking at stock markets."
Gulf Marine joins a club of other home-grown energy companies such as Abu Dhabi National Energy (Taqa) and the Sharjah-based Dana Gas that are aiming to list outside of the UAE. Abu Dhabi and Dubai exchanges, often restricted to local investors, offer less liquidity than developed markets such as London.
Gulf Marine is evaluating three oil and gas listing hubs: London, Singapore and New York.
"The UK is very pro-Middle East and they understand the Middle East, but you've also got to remember that Singapore's a very oil and gas-based stock exchange and the US has got huge amounts of liquidity and they do an awful lot of IPOs," said Mr Anderson. "London would probably be a logical step for us … Lamprells and Petrofacs have been there before."
Founded in 1977, Gulf Marine was for most of its existence a small, local provider of the offshore barges oil companies use to house workers and drilling equipment. In 2007 it was bought out by a consortium of investors led by Gulf Capital, which installed new management and pushed for expansion into markets in West Africa and South East Asia in a strategy that appears to have paid off: in those six years Gulf Marine's profits have grown by 750 per cent.
Gulf Marine is finalising a $360m Islamic finance facility that it wants to use to build barges in Mussafah or buy hardly used vessels from other operators. Last year Gulf Capital failed to push through a $500m sale of its stake in Gulf Marine.
"Unfortunately the company that was interested in us was a bit short on price, so the decision was taken by all of us that the company was valued higher than that and that we should grow the business further and aim for a flotation," said Mr Anderson. If the company listed in London, it would be on the same scale as FTSE 250 companies such as the UAE-based Lamprell, he said.
An initial public offering (IPO) would come after what has been a tough year for oilfield service companies, with Saipem and Petrofac hit by operational issues and Subsea 7 and Lamprell issuing profit warnings, said Andrew Whittock, an analyst at Liberum Capital in London.
"What London has been disappointed with recently is a series of profit warnings from oil service companies," he said. "What they will have to show is growth. You've got flat oil prices, not much volume growth upstream, so essentially oil companies have the same amount of money to spend on equipment - so where's the growth coming from?"
The healthcare provider Al Noor Hospitals is the latest Abu Dhabi company to list outside the UAE, closing its share sale in London last week with a value of US$1 billion.
[ ayee@thenational.ae ]
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Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
DEADPOOL & WOLVERINE
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Rating: 2.5/5
The biog
Birthday: February 22, 1956
Born: Madahha near Chittagong, Bangladesh
Arrived in UAE: 1978
Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.
Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”
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Zayed Sustainability Prize
Generation Start-up: Awok company profile
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Sector: e-commerce
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Stage: still in talks with VCs
Principal Investors: self-financed by founder
UAE currency: the story behind the money in your pockets
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
Company Profile
Company: Astra Tech
Started: March 2022
Based: Dubai
Founder: Abdallah Abu Sheikh
Industry: technology investment and development
Funding size: $500m
The specs: 2018 Harley-Davidson Fat Boy
Price, base / as tested Dh97,600
Engine 1,745cc Milwaukee-Eight v-twin engine
Transmission Six-speed gearbox
Power 78hp @ 5,250rpm
Torque 145Nm @ 3,000rpm
Fuel economy, combined 5.0L / 100km (estimate)