As early as the first quarter? I guess they mean Q1 of 2008 and not 2009?
Bloomberg 15 January 2008:
Drake & Scull to sell 20m shares in IPO on DFM
Drake & Scull International will sell 55 per cent of its shares in an initial public offering on the Dubai Financial Market (DFM) as early as the first quarter.
Drake & Scull, which received regulator approval from the United Arab Emirates capital market authority, will offer 20 million shares, SAIB Asset Management Co., an investor in Drake & Scull, said in an e-mailed statement yesterday.
SAIB, a unit of Saudi Investment Bank, invested $37 million through its investment funds in Arabian Gulf countries in the fourth quarter of last year, including Drake & Scull, Riyadh-based SAIB said in the statement.
The Drake & Scull IPO was "exclusively revealed" to MEP Magazine? Uh-huh. About 2 weeks after Bloomberg reported it
Starting to sound like one of these IPOs that keeps getting delayed. Like the Emirates Post IPO, Al Qudra IPO - we've been hearing about them being launched "next quarter" for the past year or two .
Arabian Business 03 February 2008:
Drake & Scull aims for stock listing
Drake & Scull International is aiming to be listed on the Dubai stock market, executive director Khaldoun Tabari has exclusively revealed to MEP Middle East.
"We have already filed for our IPO (Initial Public Offering) and are seeking approval from ESCA (Emirates Securities and Commodities Authority)," Khaldoun stated. The firm hopes to gain approval for listing on the Dubai stock market by Q2 of 2008.
It's a very important issue for a company like ours...it adds a huge dimension to our activities," he added.
Drake & Scull International (Middle East) is one of the largest MEP contractors operating in the Gulf and has divisions in Dubai, Abu Dhabi, Qatar, Bahrain, Kuwait, Oman, Egypt and Jordan.
The firm is planning further expansions in its activities during 2008, with a recent move into Saudi Arabia already gaining project wins in the Kingdom for the firm.
Drake & Scull announced a US $33 million (KD9 million) contract win in Kuwait during January. Under the contract with the Public Authority for Applied Education and Training (PAAET) the firm will provide the complete MEP services for the College of Basic Education, Boys Campus, Kuwait.
The $130 million project comprises the design and construction of 15 three-storey buildings that include educational facilities, learning resources, an administration building, recreational facilities and car parks.
The contractor's scope of works will include a central air conditioning and ventilation system; domestic water services; a drainage system; electrical power distribution and the telecommunications system.
The college will be located near Kuwait Jaber Al Ahmmed Stadium, Ardiya. It is scheduled for completion in November 2010.
Doesn't sound like Drake & Scull will be having an IPO in 2008 Q1 as previously indicated...
Gulf News 28 February 2008:
Drake & Scull set for IPO approval
Dubai - Eclectrical and mechanical engineering company Drake & Scull said it expects to receive approval before the end of March for an initial public offering this year to finance expansion. The firm, which operates in the Gulf, Egypt and Jordan, has appointed HSBC Holdings and Dubai-based Al Mal Capital to manage the sale of a 55 per cent stake, strategic planning director Qais Saleh said yesterday.
Drake & Scull IPO obviously didn't happen in the first quarter but they are reported to be having it this month (June 2008).
Drake & Scull Chairman: Khaldoun Tabari
IPO amount: AED 2.5 billion (US$618 million) [edit] Or AED 1.0 billion according to Reuters [/edit]
IPO proportion: 55% of share capital
Total share capital: AED 4.55 billion / AED 1.82 billion (my calculation, not stated figure)
Par Value: AED 1.00 (my assumption, not a stated figure) [edit] May not be correct - first post says 55% is 20 million shares [/edit]
IPO subscription period: details not supplied yet
Foreign ownership: possibly but details not given yet
Stock market: Dubai Financial Market (DFM)
Information from Bloomberg report about Drake Scull IPO June 2008. No further details on DFM website or Drake & Scull website (their last news item dates from 21 May 2008).
Update: Reuters report Drake Scull IPO for only AED 1 billion.
Joined: 19 Aug 2005 Posts: 13383 Location: up the wadi without a paddle
Posted on Mon 30 Jun 2008 10:57 by sharewadi
No, I haven't heard anything further. I was wondering the same thing yesterday. End of June is today and last I heard was that there would be an announcement before the end of June, so maybe in the next few hours? _________________ UAE IPO list | posting guidelines
DUBAI - United Arab Emirates-based builder Drake & Scull International has requested from relevant U.A.E. authorities to approve the date for its initial public offering planned for July 15 until July 26, Dubai-based Al Bayan daily reported Sunday.
Al Bayan didn't give a value for the IPO but Zawya Dow Jones reported earlier this month that the company is planning to raise U.A.E. dirhams 1 billion ($270 million) in the offering.
Dubai-based contracting firm Drake and Scull, which aims to raise at least 1 billion dirhams ($272.3 million) in an initial public offering, is still awaiting the regulator's green light, a spokesperson said on Monday.
The firm, which operates in the Gulf, Egypt and Jordan, had been planning to list by the second quarter of this year, Executive Director Khaldoun Tabari said in February.
"[We] are still awaiting approvals from the Emirates Securities and Commodities Authority," the spokesperson said.
"There is no timeframe yet."
The firm plans to sell a 55 percent stake and list on the Dubai Financial Market. A company official told Reuters in June the IPO would take place that month.
HSBC Holdings Plc and Dubai-based Al Mal Capital are advising on the sale.
Drake & Scull IPO announcement today - with eventual listing on the DFM. IPO value of about AED 1.12 billion.
If you're from the USA, you're not allowed to read this (at least, that's what the press release appears to say).
DrakeScull IPO subscription period: 08 July 2008 to 17 July 2008
Drake Scull listing on DFM expected to be Q3 2008
IPO share price: AED 1 dh per share plus AED 0.02 subscription fees
IPO shares: 1,197,777,778 shares, or 55% of total Drake & Scull post-incorporation share capital of AED 2.178 billion
Minimum subscription: 20,000 shares
Open to UAE nationals and foreigners
IPO subscription forms and prospectus available later (list of receiving banks below)
IPO information hotline: +971-4-3160300
Financial information is rather sparse - a couple of growth figures but little else in this press release. I'll update if/when I can find some more information - the prospectus should have something.
Press Release 03 July 2008:
Drake & Scull to list on Dubai Financial Market
Dubai - Drake & Scull International, (DSI), a leading service provider of mechanical, electrical and plumbing (MEP) contracting and civil contracting in the UAE, announced today its intention to pursue the listing of its shares on the Dubai Financial Market (DFM).
The Company is a UAE-based public joint stock company (PJSC), under incorporation and is one of the oldest and most experienced MEP contracting and civil contracting firms in the UAE. Drake & Scull owns directly and indirectly 100% of Drake & Scull International LLC, incorporated in Abu Dhabi (Drake & Scull Abu Dhabi), an MEP contracting company and 80% of Test Contracting Company (Test Contracting) which is a civil contracting company.
DSI is offering 1,197,777,778 shares, which represents 55% of the Company, to UAE and non-UAE individuals and institutional subscribers and aims to raise in excess of AED 1.198 billion (over US$ 325 million). Each share will be priced at AED 1 per share plus an offering cost of AED 0.02 per share, with a minimum subscription of 20,000 shares. The Offering will commence on 8 July 2008 and will close on 17 July 2008. Following the Offering, DSI will be incorporated and will then seek to list its shares on the DFM. Post-incorporation, DSI will be capitalised at over AED 2.178 billion. The Company aims to list on the Dubai Financial Market in the third quarter of 2008.
Khaldoun Rashid Tabari, Chief Executive Officer of Drake & Scull International, commented: "The UAE real estate sector is growing strongly and as a complete end-to-end MEP and civil contractor, Drake & Scull plays an integral part in many of the country’s most prestigious development projects. Our leading market position, strong brand recognition, proven financial and management strength, successful track record of delivering complex projects to demanding quality, time and budget requirements means that we are well placed to capitalise on future growth opportunities."
Share application forms will be available from any branch of the following receiving banks:
Emirates-NBD (ENBD) - Lead Receiving Bank
Abu Dhabi Commercial Bank (ADCB)
Abu Dhabi Islamic Bank (ADIB)
Dubai Bank (DubaiBank)
Dubai Islamic Bank (DIB)
First Gulf Bank (FGB)
National Bank of Abu Dhabi (NBAD)
Mashreqbank (MASQ)
Noor Islamic Bank
Union National Bank (UNB)
DSI intends to use the proceeds from the offering to enhance its leadership position in the UAE and expand its activities in the MENA region through a combination of organic growth and strategic acquisitions. DSI is currently evaluating a number of companies as potential acquisitions that would extend its geographical presence in the leading construction markets in the MENA region. The Company is also planning to secure access to raw materials by acquiring highly reputable supply companies as part of its vertical integration strategy.
Al Mal Capital and HSBC Middle East are the Joint Lead Managers for the IPO.
About DSI
DSI is a leading end-to-end contracting company providing MEP, industrial water and power (“IWP”) and civil contracting services in the UAE. These include:
MEP, where the main activities include:
Distribution systems for electrical power
Lighting systems
Low-voltage systems
Heating, ventilation, AC, refrigeration, district cooling
Plumbing, process and high purity piping systems
IWP, which operates on an engineering, procurement and construction (EPC) and EPC management (EPCM) basis, where activities include:
1. Design & build projects in:
District cooling
Sewage treatment
Water purification
2. Infrastructure work
Civil contracting, where the main activities include:
Infrastructure work: Cabling/Piping (reticulation)
Design & build turnkey projects involving District Cooling, Sewage Treatment and Water Purification
Operation & maintenance of projects
Independent execution of low & high rise buildings
DSI operates in the public and private sectors across a wide range of industries. Since its launch in 1966, DSI has designed, built, installed, commissioned and maintained the essential services of many of the UAE’s landmark buildings and development projects, including:
Dubai Internet City
Jumeirah Beach Hotel
Dubai Chamber of Commerce
the Wafi City Complex
Dubai Creek Golf & Yacht Club
Tiara United Towers
Rashid Hospital Emergency & Trauma Centre in Dubai
District Cooling Plant at Jumeirah Beach Residences and Dubai Festival City.
In addition, DSI has also successfully completed a range of prestigious projects in Abu Dhabi, including the
Shangri-La Hotel
Ruwais Housing Complex Extension
Baynunah Hilton Tower Complex
DSI is currently contracted to work on 32 major contracts worth around AED 2.4 billion in total and has a strong pipeline of forthcoming business. DSI recently won “MEP Contractor of the Year” and “Medium MEP Project of the Year” titles in Middle East MEP Awards 2007.
Financials
DSI has experienced strong growth in recent years. In 2007, revenues increased by 16.7% from the previous year and the Company saw an increase of 38.1% in gross profits compared to the previous year. Year on year growth in net profits excluding the minority share is 37.6%. These results indicate that, despite rising material costs, the Company continues to reduce overall operating costs and achieve further efficiencies in its business.
As a public company, DSI will seek to maximise returns to shareholders through further increases in profits by enhancing its leadership position in the UAE and expanding its regional operations across the Middle East.
Positive Sector Dynamics
The Company believes that all the principal industries in the GCC that commission construction projects and which are therefore served by DSI, are expected to sustain their rapid regional growth for at least the next seven years. These include: healthcare, hospitality and tourism, commercial and residential real estate and infrastructure projects.
The total value of projects currently under construction in the GCC is estimated at US$1.5 trillion, with MEP accounting for approximately one third of the total. The UAE has the largest construction market in the GCC and Taib Research estimates the total value of active projects at US$350 billion. According to data published recently by the UAE Ministry of Economy, the nation’s construction industry grew by 17% in 2007.
Al Mal Capital PSC +971 4 3696600
Khalid Madi
Razan J. Kabbani
Nicolas Azar
HSBC Middle East +971 4 5093335
Amro Nahas
Perla Khalife
Brunswick +971 4 3658260
Alex Blake-Milton
Azadeh Varzi
Jeehan Balfaqaih
This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the prospectus to be published by Drake and Scull in due course in connection with the listing of its shares on the Dubai Financial Market (DFM). Copies of the Prospectus will, following publication, be available from the Company’s website (www.drakescull.com) and designated branches of the Receiving Banks.
I have a feeling this will be one of those IPOs that will 'hit the roof' on subscriptions.
However, it will be interesting to know their reimbursement policy in case this happens... I cannot find the prospectus online or on any of the branches yet.
Also, I heard that the CEO of Drake and Scull was in DubaiEye today.. Anyone has an update on what he said?
Yes, Drake & Scull CEO (actually I think it might have been deputy CEO or someone else) was on Dubai Eye Business Breakfast this morning. I thought he said the IPO starts tomorrow (07 July 2008), which conflicts with previous information that it would start on 08 July 2008. The interviews are usually available for replay on zawya.com later on the same day.
There was a prospectus summary on the last page of the Gulf News business section this morning, but no financial information. Full prospectus should be available at receiving banks after tomorrow, or at least HSBC - the lead receiving bank.
The DSI man did say they made profits in excess of AED 100 million last year. With over 2 billion shares outstanding, that would give them a PE of a bit over 20, at par value of 1 dh per share.
Other things I thought he said were:
Oversubscription refunds by 31 July 2008
First General Assembly Meeting within 30 days of end July
DFM listing hopefully sometime in September
I expect it will be worth subscribing for the 20,000 minimum if that's the minimum allotment subscribers will receive. Anything over that, it's probably going to be oversubscribed to a level where it isn't worth while. _________________ UAE IPO list | posting guidelines
Now i wanted to ask is it worth investing in drake and skull.
At IPO price of AED 1 dh per share, probably. There's never been an IPO on DFM or ADX that has floated at less than IPO price as far as I know (the DIFX is a different story - DP World (DPW) shares tanked after listing).
Joined: 03 Jun 2008 Posts: 131 Location: Abu Dhabi
Posted on Mon 07 Jul 2008 10:00 by small fry
So technically we need AED 20000 for the minimum qty of shares and AED 400 for susbscription fees which would be locked until July 31st by when we would know how many shares we would get.
How many shares are on offer? 1.2 billion?!? Is it still possible to oversubscribe
Yes, AED 20,000 + 400 would be locked up if you apply for the minimum number.
1.2 billion shares is not extreme, and I don't know of any UAE IPO that has been undersubscribed. The Aabar IPO in 2005 (0.5 million shares offered) was 800x oversubscribed. The DFM IPO in 2007 (1.6 billion shares offered) was 300x oversubscribed.
But at the other end of the scale we had the Air Arabia IPO only 1.5x oversubscribed and the Gulf Nav IPO only 3.5x oversubscribed. My feeling is that the Drake Scull IPO will do better than that though. _________________ UAE IPO list | posting guidelines
given the huge amount subscription..is anyone applying for this IPO..i have personally dealt with this company and they are doing very well..so i dont think there are many chances of this IPO fizzling out before being listed ..are there??
I expect it will be worth subscribing for the 20,000 minimum if that's the minimum allotment subscribers will receive. Anything over that, it's probably going to be oversubscribed to a level where it isn't worth while.
The allotment policy seems to have no minimum allotment this time. Going by the information provided in Gulf News yesterday the overscription amount will be allotted on a prorata basis on the total amount subscribed.
Gulf News 06 July 2008:
To be allotted to each eligible Subscriber in proportion to the Subscriber's application size pro-rated to the total size of all eligible Subscribers' applications.
Going by the information provided in Gulf News yesterday
Ah. Thanks for the correction. You mean this bit (and there's a similar condition for Tranche II)? Yes, I agree, that effectively says there's no minimum allotment for Tranches II and III. Ah well, it seemed like a good idea at the time.
Gulf News / Drake Scull prospectus 06 July 2008:
To be allotted to each eligible Tranche III Subscriber in proportion to the Tranche III Subscriber's application size pro-rated to the total size of all eligible Tranche III Subscribers' applications.
There are 4 tranches.
Tranche 1: UAE nationals - retail (18.2%)
Tranche 2: UAE & GCC nationals and institutions (57.6%)
Tranche 3: Foreign nationals and institutions (19.2%)
Tranche 4: Ministry of Finance can opt to subscribe for 5% of the shares
I was reading the Tranche I allotment policy and misread the bit about being citizens of the UAE - I just saw the heading UAE Retail and assumed that included residents of the UAE.
Drake & Scull prospectus Gulf News 06 July 2008:
To be allotted equally among all eligible Tranche I Subscribers, subject to a maximum allotment of 20,000 shares per Subscriber.
Although it can always be changed ...
Drake & Scull prospectus Gulf News 06 July 2008:
The Founders reserve the right to allot shares in any way as they deem necessary to guarantee conformity with the provisions of the Companies Law, the Company's Memorandum and Articles of Association and the Prospectus.
Still, that effectively means that if oversubscription rate is high, then shares will list at a high price, but you'll only end up with a small handful. And if oversubscription rate is low, then shares will list at a low price and you'll get minimal return. Now I remember why I don't usually bother with IPOs ... _________________ UAE IPO list | posting guidelines
SW, does this mean that tranche 1 subscribers (UAE nationals) are guaranteed to get a minimum of 20,000 shares and tranche 3 subscribers (foreign nationals) are not guaranteed?
Tranche I subscribers will get a maximum of 20,000 shares but because each subscription is limited to 20,000 shares, chances are they'll get more than in other tranches.
As Tranche I is 217,780,000 shares, that means about 10,900 subscribers could get 20,000 shares each. If 100,000 UAE nationals subscribe, then they'll get a little over 2000 shares each.
Tranche III has no maximum limit so yes, actually, you're correct in thinking there's no guarantee of anything.
If the DSI IPO is 50x oversubscribed in Tranche III and you've put in for 20,000 shares, you'll only get 400 shares. If they list at 2-3 dhs, that means you only end up with 400-800 dhs profit in your pocket. Not great for keeping 20,000 dhs locked up for a month.
If you threw a million dhs at the IPO, then you might end up with a profit of 20,000-40,000 dhs. Better than a bank I suppose - you'd only get 4000-6000 dhs on deposit for a month. _________________ UAE IPO list | posting guidelines
Drake & Scull IPO announcement today - with eventual listing on the DFM. IPO value of about AED 1.12 billion.
Press Release 03 July 2008:
Share application forms will be available from any branch of the following receiving banks:
This statement technically is not 100% true, only selected branches have them. Well in the case of NBAD at least.
As for allotment, I totally agree with your analysis above SW. My guess is people are looking for a repeat of Ajman Bank but for a share that has a heavy weight and which I think will be controlled. I was in two minds about subscribing, but now I think I will wait and see either how it settles or if I am luck get an order in at the opening bell ( )Wow it's hot here and I feel like a snowball.
I will probably bet on its long term performance as a solid stock not as a speculative one.
I think I read in the Gulf News IPO details that there was a max. allotment quota of 51% for GCC-Nationals & 49% for Non-GCC nationals.
Since Non-GCC Nationals are part of Tranche-3 only, which constitutes less than 20% of the total IPO size, I wanted to know how the above quota would be maintained.
I suppose I must have misunderstood the statement in Gulf News. Just wanna get it clarified.
Hello viv dubai and welcome to the has-anyone-seen-my-quota stock forums .
viv_dxb wrote:
I wanted to know how the above quota would be maintained.
I think what the GN is referring to is the maximum ownership allowances of the company's shares. That doesn't mean the IPO will be split up that way - once shares start trading, foreigners can buy IPO shares bought by UAE nationals and so the ownership proportions might change.
Several recent insurance IPOs for example, have been restricted to UAE and/or GCC nationals only, but after floating on the markets, foreign ownership will be allowed up to 25%.
Press release from Drake & Scull about the IPO says "We are delighted with the response so far to our IPO", which doesn't say much . Only part of the press release below (I didn't include paragraphs which were repeated in previous posts) ...
Press Release 15 July 2008:
Drake & Scull IPO to close on Thursday 17 July
Two days left to subscribe
Dubai: Drake & Scull International, (DSI), reminds investors that its initial public offering (“IPO”) will close at the end of normal banking hours on Thursday 17 July 2008.
DSI is a UAE-based public joint stock company (PJSC), under incorporation and is one of the oldest and most experienced mechanical, electrical and plumbing (MEP) contracting and civil contracting firms in the UAE.
DSI is offering 1,197,777,778 shares, which represents 55% of the company, for AED 1 per share (plus an offering cost of AED 0.02 per share) to UAE and non-UAE individuals and institutional investors. Minimum subscription is 20,000 shares.
Khaldoun Rashid Tabari, Chief Executive Officer, Drake & Scull International commented: "We are delighted with the response so far to our IPO. We will be the first MEP contracting company to list in the UAE and offer investors an opportunity to access this specialist area of the fast growing construction industry. We are well positioned to benefit from the construction boom and just yesterday announced winning the contract for two hotel projects on Yas Island awarded by Aldar Properties."
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