‘Oil Baron’ looks at IPO to fund global buyouts
ANTHONY RICHARDSON BUSINESS REPORTER
Oilfield services company Al Mansoori Specialised Engineering will consider a public share issue to fund its ambitious growth targets of 25 per cent annually, according to the managing director.
The Abu Dhabi-based firm doubles its revenue every four years through strategic acquisitions and joint venture agreements with internationally recognised companies which add value to its service.
Managing director Nabil Alalawi told Emirates Today eventually profits alone would not be able to meet the expense of rapid expansion plans. “We enjoy 25 per cent turnover growth every year, which means we double in size every four years,” said Alalawi, who last year became the first Arab to be voted Middle East Oil Baron.
“Our growth has been mainly through acquiring companies, and we are now looking at some big acquisitions to achieve our long-term objective of offering the industry a fully integrated service.
“We are looking at companies which will add value to our services. In the past, we have focused on companies working in our services, such as pumping and stimulation and tubing services.
“It is challenging to fund expansion, and there has to come a day when you just cannot finance it from within the organisation, especially when you double in size every four years.
“When that day comes, we will look at other options, one of which will definitely be an IPO.” Al Mansoori, established in Abu Dhabi in 1977, employs about 900 people in more than 20 countries across the Middle East, North Africa, Central Asia and East Asia.
Its services include slickline and completions, drill stem testing, mud engineering and fluid filtration.
It last week acquired American Safety Al Mansoori by increasing its stake from 51 per cent to 100 per cent.
American Safety Al Mansoori, which was established in 1999, provides services to customers in the oil and gas sector.
The company has just signed a multi-million dollar deal to acquire the tubing conveyed perforation division of Energy Inc as part of its ambitious plans to build and strengthen its business developments in Egypt.
The acquisition marks AlMansoori Specialised Engineering’s third venture into the Egyptian market.
In July, the company acquired Cairo-based service company Gulf Petroleum Investments in a multi-million dollar deal.
Its first venture into the rapidly growing Egyptian oil and gas sector was the acquisition of production testing, drill stem testing and memory gauge equipment company Alpine Oil Services Egypt.
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