GAC IPO

[sharewadi]

Gulf Agency Company (GAC) was reported in Emirates Business a couple of days ago, as not going the Initial Public Offering (IPO) route to raise money. I couldn't find any information that GAC had considered it in the past so it struck me as an odd headline then. Had GAC mentioned an IPO previously?

Still, I'll start this topic just in case GAC change their minds. It wouldn't be the first time a UAE company says they're not doing something, and then several weeks or months later they do it anyway. Look at the number of contrary reports about the Emirates IPO for example. You can imagine senior management meetings picking petals off daisies - "IPO" ... "no IPO" ... "IPO" ... "no IPO" ...

Emirates Business 19 May 2008:

GAC rules out IPO to fund its expansion Global shipping and logistics provider Gulf Agency Company (GAC) Group has ruled out launching an initial public offering (IPO) to fund expansion and acquisition programmes, a senior official has revealed. The group intends to maintain its current funding model which involves significant levels of self-financing complemented by loans from regional and international banks. "We are content with our financing model and see no reason at all to go to a capital market to rise money," Group Director Bengt Ekstrand told Emirates Business. "For us launching an IPO is totally out of the question. The group's performance has been good and we will continue to fund our programmes from our returns with additional financing from banks." Dubai-based GAC is a world leader in shipping, logistics and marine services with clients across the globe, though the Middle East remains its core market. The group started as a shipping agency operating in the Middle East but later adopted a global approach and diversified.

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