Middle Eastern logistics firm Tristar Transport has pulled its initial public offering in Dubai, dealing a blow to the city’s attempts to revive a stock market where just one company has listed in three years.
Tristar has informed Dubai’s main bourse that the IPO has been withdrawn, Chief Executive Eugene Mayne told Bloomberg in an interview. The deal was likely withdrawn “largely due to a mismatch in valuation expectations and investor education,” he said.
Tristar had set the price range for the offering at 2.20 dirhams to 2.70 dirhams per share. The firm was offering up to 24% of its shares in the IPO, valuing it at as much as 3.24 billion dirhams ($882 million), and the sale was scheduled to end on Thursday.
“We have strong cash flow and cash balances, we have capital for growth,” Mayne said, adding that the firm is not in a hurry to tap the IPO market again in the short term.
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