I read this today tucked away in an article about VOIP in 'Emirates Today' today - comments from Sultan Saeed Al Mansouri, UAE Minister of Communications and Chairman of Emirates Post (emphasis added).
[edit] See also Emirates Post IPO prospectus and other information (page will be updated as information becomes available) [/edit]
Who wrote this:
“We will make the decision that does not jeopardise the phone operators the private sector or the individual.” Mansouri said Emirates Post will be offering an initial public offering (IPO), but said a date has to be agreed, with the company set to undergo restructuring first.
Emirates Post is looking to expand into overseas markets, but cannot do so as a government organisation. He also said the introduction of door-to-door postal delivery service was still on the agenda.
“The UAE is a growing market.We need to have some kind of stabilisation in the construction situation in Dubai, Abu Dhabi so that we can organise coding to provide this service.
If Emirates Post intends to raise $1 billion or AED 3.67 billion, that would make it the largest IPO in the UAE so far. The Air Arabia IPO which closed in March 2007 is the largest so far with equity of about AED 2.67 billion.
You'd expect them to do better than AED 161m dhs profit per year then. Usually here, IPO shares are only part of the total share capital eg 55% for Air Arabia IPO, 20% for DFM IPO.
I guess Emirates Post total share capital will be of the order of double the IPO amount at least so AED 7-10 billion?
Current profit would only be about a 2% ROE. Of course, profit levels should go up substantially after they get all the IPO money and use it wisely .
News below comes from a couple of articles today about buying new planes...
Emirates Post (Empost), which plans to raise about $1 billion in an initial public share offer this year, will start an express cargo unit, Empost Air, on April 29 using two leased Airbus 300 aircraft, Empost Director General Abdulla al-Daboos said.
KT comments from "a spokesman"...
Khaleej Times 04 April 2007 wrote:
Also in the pipeline for UAE's fast growing national postal company is an IPO proposal, which is awaiting individual sanction from all emirates. "The IPO will be finalised by the end of this month. What is yet to be decided is the IPO’s public-government ratio," he said. The IPO will be open to all investors, including expatriates.
Khaleej Times 04 April 2007 wrote:
Last year, Emirates Post recorded a net profit of Dh161.35 million, an increase of 19 per cent over the previous year, underscoring its increased mail volumes and introduction of new non-postal services at post offices.
Emirates Post / Empost IPO was mentioned on the Business Breakfast (radio) this morning, didn't hear where they got the information from. Value was AED 3 billion according to them.
Found some background information (from Jan 2006) which might be out of date by now. It was originally speculated that the Empost IPO might be the first IPO of 2006 in the UAE .
Best estimate of proportion of total share capital available for IPO is 40%, so figures above won't be to far off.
Gulf News 25 Jan 2006 wrote:
Cabinet 'will approve Emirates Post IPO'
By Saifur Rahman, Staff Reporter
Dubai: Emirates Post's (Empost) initial public offering (IPO), which will offload the government's 49 per cent stake, is likely to be approved by the new Cabinet.
"The law that governs Emirates Post needs to be amended for the IPO and we are awaiting government approval," Abdullah Al Daboos, Emirates Post's director-general said.
"Once the new Cabinet starts operating, we expect it to pass the necessary amendments to clear the IPO. That is when we will offer its shares to the public."
The new Cabinet is expected to be formed by His Highness General Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, shortly.
This could be the first IPO of 2006 in the UAE which is blessed with huge sums of liquidity. Emirates Post will be the first government department to go public.
Emirates Post has earmarked Dh109 million budget for developing infrastructure for this year.
"Boosted by 50 per cent growth of our courier subsidy Empost, we recorded a Dh133 million net profits on revenues of Dh340 million in 2005," he said. "This is quite high for an establishment whose capital is Dh100 million.
"This is also going to be another busy year for us. We expect a further six per cent growth in net profits again this year.
"Emirates Post offers 45 types of services including many that are non-postal. We have aggressive plans to diversify businesses by making large global acquisitions to boost logistics and freighter businesses."
He said, his organisation will make a number of acquisitions this year. "We will make a number of acquisitions in logistics and freight business across the region," he said.
"In the longer term, we might operate our own aircraft to carry freight as there is a shortage in capacity on certain sectors."
In November, it acquired 60 per cent stake in Wall Street Exchange Centre, one of the UAE's largest money exchange houses, for Dh48 million.
Analysts say, as a government entity, Emirates Post's acquisition of Wall Street Exchange will help it to control the remittance business and crackdown on hawala operators.
Emirates Post also launched a direct marketing arm, Emirates Marketing and Promotions to expand its portfolio.
Emirates Post announced it is planning to open ownership of its shares to investors through an Initial Public Offering by June/July, before listing on both the Dubai Financial Market (DFM.DU) and the Abu Dhabi Securities Market.
That's a first I think - a dual listing on DFM and ADSM. I'll see if I can find more information shortly - click on the subscribe link below to be notified automatically if replies are added to this topic. _________________ UAE IPO list | posting guidelines
I just phoned Shuaa. They're not the lead managers (for now anyway) so they don't have relevant information. All they know is that the EmPost IPO is coming.
Apparently, a lead manager has yet to be appointed, and there isn't any prospectus information. Perhaps by June.
Seems to be cutting things a bit fine then. I didn't see anything from a quick search, or on Emirates Post own website - their latest news doesn't mention the IPO. I'll update here if/when I find out more.
Contrary to what had been reported earlier, Emirates Post announced it is planning to open its shares to investors, through an Initial Public Offering (IPO), sometime during the 4th quarter of this year. The planned IPO would increase Emirates Post’s paid up capital to AED 3,000 mn, from its current capital of AED 400 mn.
Well, so much for the Empost IPO happening in 2007 Q4. Looks like it will be 2008. Maybe in the first quarter? They'll only be in the planning stage Jan 2008 so it could be a few more months...
I just found this when searching for something else about Emirates Post. A useful update, sort of ...
... "A report said"? What report ?
Reuters 06 January 2008:
Emirates Post IPO in 2008 H2
State-owned Emirates Post (Empost) plans to sell a stake of up to 40 percent to the public in the second half of 2008, a report said.
The company had appointed advisors to complete a valuation of the its five divisions before the initial public offering, said Minister of Governmental Sector Development Sultan al-Mansouri, according to Al-Khaleej.
The valuation would not be less than 3 billion dirhams ($816.8 million), Emirates Business quoted Empost director-general Abdulla al-Daboos as saying last month.
Empost planned to use the money it raises to acquire logistics companies, financial services firm specialised in remittances and express mail companies in Asia, al-Daboos had said in 2006.
UAE's state-owned Emirates Post (EMPOST) plans to raise about 1 billion dirhams ($272.3 million) selling shares to the public within two months, Chief Executive Abdalla al-Daboos said in remarks published on Thursday.
Empost, the sole provider of postal services in the UAE, expects to sell a 49% stake in an initial public offering and would offer about 5 to 8 percent of that to non-UAE nationals, al-Khaleej quoted Daboos said as saying.
The firm, which started cargo unit Empost Air last year, was in talks to spend up to 1.5 billion dirhams on Asian acquisitions and would start a banking joint venture with Noor Islamic Bank, Daboos said in January.
Lebanon's Makhzoumi family said this week it would sell shares in Dubai-based Future Pipe Industries in an IPO, while Dubai-based interiors contractor Depa Ltd is also planning a public share sale.
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. Emirates Post IPO not quite so soon. At least it gives them more time to print up the prospectuses 