Dubai's Tristar drops IPO plan

Shareholders say 'greater returns can be realised' through its current growth strategy

Tristar has a fleet of more than 2,000 lorries and 35 maritime vessels. Image courtesy of Tristar

Dubai-based logistics company Tristar has dropped plans to float its company on the Dubai Financial Market.

The listing, which would have been the first major company flotation on the exchange since Emaar Development's IPO in November 2017, is being withdrawn as "shareholders' expectations were not met", the company said in a statement.

"The board and existing shareholders believe that greater returns can be realised executing Tristar’s current growth strategy under the established shareholder structure."

Tristar announced plans to float up to 24 per cent of its shares last month.

The company, which was founded in 1998 as a road transport business but has developed into a storage and distribution company working with major oil firms, was looking to raise up to $160 million in primary proceeds from the float. Existing shareholders Agility (which owns 65.12 per cent of the company), Gulf Investment Corporation (19.61 per cent) and an investment vehicle owned by founder and chief executive Eugene Mayne (15.27 per cent) were also planning to sell shares through a secondary offering.

Earlier this month, the company announced an indicative price range of Dh2.20-Dh2.70 for the shares, inferring a market capitalisation of Dh2.64 billion–Dh3.24bn ($719 million-$882m) for the business.

Tristar has a fleet of more than 2,000 lorries and 35 maritime vessels. It operates 69 fuel farms and more than 100 remote sites in 21 countries.

The company made earnings before interest, tax, depreciation and amortisation of $103.6m last year on revenue of $453.4m by 2020.

It had planned to use some of the proceeds to repay about $53.6m of debt owed to related parties.