Shuaa Capital (SHUAA) is the lead manager and financial advisor.
Shuaa Capital 25 April 2005:
UAE’s Gulf Navigation (GULFNAV) received government approval to open its shares to the public through an initial public offering scheduled sometime later this year. The Dubai-based company will have a capital of AED 1,500 mn post the share offering.
[edit] Shuaa Capital has released a pre-IPO initiation report 12 July 2006 (32 pages, PDF) [/edit] _________________ UAE IPO list | posting guidelines
Last edited by sharewadi on Thu 31 Aug 2006 13:59; edited 2 times in total
So it'll go ahead in mid-July 2006. Open to UAE and GCC nationals only.
Press Release 31 May 2006:
Gulf Navigation IPO on July 15
Dubai: Shuaa Capital (SHUAA), the UAE's biggest investment bank, announced yesterday it had secured the approval of the Ministry of Economy to launch the initial public offering (IPO) for the shares of Gulf Navigation Holding (GULFNAV) on July 15, after the approval of the offering prospectus.
The subscription period will be two weeks and will close on July 29.
Offer price
The company plans to raise Dh910 million, representing 55 per cent of the company's share capital, to be allocated over 910 shares at an offer price of Dh1 per share, in addition to Dh0.02 in administrative costs.
The IPO will only be open to UAE and GCC nationals, both individuals and institutions.
Gulf Navigation Holding is a leading regional operator in the field of liquid cargo transportation, specialising in the shipping of crude, oil and chemical products.
Gazi Al Ebrahim, Gulf Navigation Holding's Chief Executive Officer and Managing Director, said, "The company has consistently managed to distinguish itself in the shipping industry through a growth strategy that included major plans for the expansion of the fleet and solid client base. Gulf Navigation has already commissioned the building of very large crude carriers and chemical tankers and secured long-term shipping contracts with SITC, a subsidiary of Sabic, the Stolt-Nielsen Transportation Group, and two other major oil companies."
Shuaa Capital is the financial advisory, lead manager and book runner for the IPO of Gulf Navigation Holdings.
Makram Kubeisy, Managing Director (Investment Banking Advisory) at Shuaa Capital, said, "Gulf Navigation Holding has a solid track record and experience in the liquid cargo shipping industry with a strong management team."
Karim Schoeib, Vice-President at Shuaa's Investment Banking Advisory, said, "We believe that the company is uniquely positioned to benefit from favourable market conditions in the liquid cargo shipping industry resulting from the global economic growth and increased demand for crude oil and its derivatives."
Obviously still demand for these IPOs. 30 times oversubscribed is a little less than several hundred times as was the case last year (and even this year for TAMWEEL).
Speaking of TAMWEEL, that's pretty poor reporting. They floated at 2.80, and rose to 3.10 in the first week (unusually for an IPO), have fallen to about 2.90 since then. Which is hardly a 'tumble'.
Reuters 08 August 2006:
Investors swarm for Gulf Navigation IPO
Dubai: The $248 million initial public offering of shipping firm Gulf Navigation Co (GULFNAV) has been around 30 times oversubscribed, sources close to the deal said yesterday.
The offer of 910 million new shares at Dh1 opened on July 24 amid some concern that a regional stock market slump had hurt demand for new share issues.
"The IPO has been around 30 times oversubscribed and there is still more to time go," a source familiar with the transaction said.
The figure was confirmed by a second source close to the company, which transports crude oil and chemicals and is offering Gulf Arab investors a 55 per cent stake.
Demand for Gulf IPOs, especially those in the UAE, has been strong overall as investors have been virtually guaranteed a quick profit when the shares started trading.
During the regional stock market boom of 2004 and 2005 shares in Gulf IPOs rose on average by 300 per cent on their debut. Governments had insisted on conservative valuations, with the offer price determined by regulation rather than book building.
Returns have become less certain after markets crashed in March this year.
Mortgage lender Tamweel's IPO, which was launched in March, was more than 500 times oversubscribed.
The shares debuted at three times the IPO price this month, but tumbled soon after as leveraged investors bailed out to book what gains they could.
Gulf Navigation IPO was only 3.5 times oversubscribed? Quite a change from the hundreds of times oversubscribed for IPOs last year. What opening price do you think? Par value is 1 dh. I doubt it'll go over 2 dhs. Around 1.20 to 1.40 dhs, and it'll drift down I think.
My guess is that people ended up with more shares than they expected and will need to unload them to pay back leveraging costs. Could be a glut and we might see it go below par within a few days of float before going up again.
Now, let's see how wrong I am ...
Khaleej Times 30 August 2006:
GNH announces IPO allocation percentages
DUBAI — Gulf Navigation Holding (GULFNAV) announced yesterday the allocation percentages for its recently concluded Initial Public Offer (IPO) of Dh910 million.
The allocation, conducted on a pro-rata basis, awarded subscribers for the first tranche of 273 million shares with 50.33 per cent of the shares applied for; while those for the second tranche of 637 million shares received 23.65 per cent.
The allocations were concluded on the August 22, 2006, and refunds commenced the following day, as per the offering prospectus.
Gulf Navigation Holding's IPO subscription closed on August 7, 2006, collecting AED 3.1 billion, being oversubscribed by 3.5 times. The UAE Ministry of Finance and Industry subscribed to 5 per cent of the Company's shares, the maximum percentage allowed to it in accordance with the Council of Ministers' resolution. The ministry was allocated the full percentage prior to the allocation of shares to subscribers.
Gulf Navigation is valued at $2.3 billion? That's dollars? And 910 million shares sold at par value of 1 dh? Some maths doesn't add up here. That means that book value of each share is worth (2.3 x 3.67) / 0.91 = 9.28 dhs. And very roughly, shares are selling at 3-6 times book value in this market. I really don't see this IPO floating at over 30 dhs per share. There must be something missing in the numbers, or in my understanding of them.
Total share capital is more than 910m shares - 1.5 billion shares? But that still doesn't explain the valuation figure .
Press Release 30 August 2006:
Gulf Navigation Holding completes share allotment to subscribers
Dubai: Gulf Navigation Holding (GULFNAV) recently allocated shares to subscribers on a pro-rata basis following its Initial Public Offer (IPO) of Dh910 million.
The allocation awarded subscribers for the first tranche of 273 million shares with 50.33 per cent of the shares applied for. Those who applied for the second tranche of 637 million shares received 23.65 per cent.
The allocations were concluded on August 22, and refunds began the following day, in accordance with the prospectus.
Gulf Navigation Holding's IPO subscription closed on August 7, collecting Dh3.1 billion, oversubscribed 3.5 times.
The Ministry of Finance and Industry subscribed to 5 per cent of the company's shares, the maximum percentage allowed to it in accordance with the Council of Ministers resolution.
The ministry was allocated the full percentage prior to the allocation of shares to subscribers.
Abdullah Abdulrahman Al Shuraim, chairman of the board of Gulf Navigation Holding, said: "We are moving rapidly towards listing on the Dubai Financial Market.
"I am pleased to note that allocation of shares and refund of the excess funds went ahead as scheduled, and the allocations to new subscribers were substantial.
"I would like to invite our new shareholders to the Founding General Meeting in Dubai in September, and extend my thanks to the authorities, the lead manager, the receiving banks and the public for their confidence and support."
Gulf Navigation Holding will convene its first Founding General Meeting on September 14 at the Emirates Towers at 7pm. At the meeting, the 11-member board of directors will be elected, in addition to the auditors.
Gulf Navigation Holding, the region's rapidly growing oil and chemical carrier, operates 18 tankers through a fully-integrated organisational structure.
Valued at $2.3 billion, it provides the full spectrum of services for maritime liquid cargo transportation, maritime commercial agencies, vessels technical management and vessels in-port agency services.
Here's a bit more information from today's Gulf News article about IPOs...
Gulf News 02 September 2006:
Even though Gulf Navigation's (GULFNAV) share was priced at Dh1 as is usually done, it was priced 23 times forecast 2006 earnings and 11 times 2007 profits. For that kind of rich pricing, a three and half times oversubscription is good.
So EPS is about 0.04-0.05 for 2006 and 0.09-0.10 for 2007.
Just read back a few posts - that's a pretty bad call from reuters at the beginning of Aug saying the offer was 30 times oversubscribed, when in the end it was only 3.5 times oversubscribed .
Anyway, share count is either 1.5 billion (from first post) or 1.65 billion (from second post if 910 million is 55% of total).
That means profit forecasts are
2006 - AED 60-83 million
2007 - AED 135-165 million
That's assuming original reporter got those PE ratios correct. Maybe there's some accounts somewhere to check.
Anyway, a PE of 23 is nothing to write home about when something like Emaar Properties (EMAAR) is only 15 or so. But no doubt they'll float at something insane ... _________________ UAE IPO list | posting guidelines
Last edited by sharewadi on Mon 12 Mar 2007 18:16; edited 1 time in total
Found this report (download, pdf, 32 pages) dated October 2006 from the Global Opportunisitc Fund - managed by Global Investment House.
A few useful bits of information but no listing date. I wonder what's happened about that ? Report said procedures for listing should be completed in November 2006.
Global Investment House October 2006:
This is particularly evident this quarter when the IPO for Gulf Navigation was carried out amidst falling market conditions and political unrest in the region. The IPO which was for about AED 900 million collected AED 3,100 million with the UAE Ministry of Finance and Industry subscribing to 5 per cent of the Company's shares, the maximum percentage allowed to it in accordance with the Council of Ministers' resolution.
...
The IPO of Gulf Navigation which was for about AED 910 million raised over AED 3,100 million with the UAE Ministry of Finance and Industry subscribing to 5% of the Company's shares along with other leading institutions from across the region.
...
We continue to hold our investment in this company as the long term prospects are extremely encouraging especially with the successful completion of the IPO and also improving fortunes of the shipping industry.
Gulf Navigation Company was established in Muscat, Sultanate of Oman in 2001 as Gulf Navigation & Brokerage LLC.
The Company is a leading marine services provider in the Gulf offering diversified services such as chartering and ship agency services, ship management, brokerage, sales and distribution of chemicals, crude, etc.
The company changed its headquarter to Dubai in 2003 and is currently a UAE registered holding company providing services through:
1. Fully owned subsidiaries in UAE, Saudi Arabia, Kuwait, Qatar and Oman
2. Joint venture with reputable partners in the Arabian Gulf
3. Strategic alliance and satellite offices
Shareholders’ Structure (Pre-IPO)
Financial Highlights (AED ‘000)
Recent Developments
The IPO closed on 7th August 2006, oversubscribed by over 3.5 times. 910 million shares representing 55% of total capital was offered at AED 1.03 and raised in excess of AED 3 billion.
Gulf Navigation held its founding general assembly on Thursday, 21st September, 2006 where the assembly consisting of over 73% of the shareholders, including ourselves, elected a 11-member Board that includes the core Founders and other members such as
Mr. Rashed Hamad Al Shamsi - General Manager of Emirates General Petroleum Corporation (Emarat); Chairman of EMOJET; Chairman of EMOIL; Chairman of EMDAD; Founding Partner of MEECON ; Owner of Al Shamsi Property Management Company; Member of the Board of the Dubai Financial Market
Mr. Abdullah Mohammed Al Housany - Deputy General Manager Al Salam Company Ltd.
Mr. Khalid Al Zamil - Member of the Board of Zamil Group; MD of Zamil Industrial Investment Company; Board Member for the Royal Commission for Jubail and Yanbu; Chairman Council of Chamber of Commerce (East Region); consultative Member of Committee Higher Economic Council; Chairman of NAMA; Chairman of JANA.
It is expected that the company will complete all its incorporation procedures by October / November and be listed in the Dubai Financial Market so as to provide liquidity to the company.
Gulf Navigation signed a contract for purchasing one oil tanker with a capacity of 2 million barrels, expected to be delivered in 2007. In addition, 6 Petrochemical tankers are expected to be delivered between 2008-2009
Gulf Navigation signed a contract time charter agreement with ST shipping and trading based in Switzerland for three ships with a total amount of AED145 mn.
Gulf Navigation signed a 15-year contract with SABIC totaling AED1.5bn, 3-year contract with Shell, and a ship renting contract with Stolt Nielson Transportation Group.
Fund Details
Commitment: USD24.2 mn
Liquidity: The fund along with the other investors would look to grow the company prior to exploring liquidity options.
The report contains information compiled from information which Global Opportunistic Fund does not control. Global Opportunistic Fund, therefore cannot accept the responsibilty for the accuracy, completeness or timeleness of the contents of the report. Global Opportunistic Fund disclaims all liability for any loss or damage arising out of or in anyway related to the contents of this report.
Code:
Shareholding Structure
Promoters 49%
Other 51%
Source: company and offering memorandum
Shareholders Name Ownership%
Founders 49%
Opportunistic Fund 12%
Others 39%
Total 100%
All figures in AED 000s
Financial Year 2004 2005 2006F
Revenue 49,887 101,337 202,786
Gross profit 14,774 44,144 79,890
EBITDA 8,855 34,910 70,572
Net income 9,079 35,779 71,473
Total assets 31,089 442,542 2,480,442
Paid up capital 500 500 1,655,000
Gulf Navigation Holding has been approved by ESCA for listing. Still no date given but perhaps it's soon...
Khaleej Times 23 January 2007:
Gulf Navigation Holding listing approved by ESCA
BY A STAFF REPORTER
ABU DHABI — Shaikha Lubna Al Qasimi, Minister of Economy and the Chairman of the board of Securities and Commodities Authority has approved the registration of Gulf Navigation Holding (GULFNAV) for listing on the stock exchanges.
At present there are 118 companies from different sectors, including 22 foreign companies, listed on the UAE stock exchanges.
Now, let's see what sort of price Gulf Navigation floats at. This one seems to have been a long time coming. Doesn't seem to be the usual shareholder information on DFM, DFM2, or ESCA websites yet...
DFM 06 February 2007:
DFM announces the listing of Gulf Navigation Holding Company (GULFNAV), and trading commences tomorrow on Wednesday 07 February 2007.
hi
sharewadi
is it possible for you to know gulfnav dividend policy?
example: air arabia 25%profir,arabtec 45%profit,cash dividends to there share holders.
lala
The Company is expected to adopt a dividend policy of distributing at least 25% of net income as dividend payments subject to bank financing, working capital and capital expenditure requirements. Dividend payments will be upon the recommendation of the Company Board of Directors and the approval of the General Assembly of Shareholders.
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