Depa IPO announces pricing of shares
Depa Limited (Depa or the Company), a leading provider of interior contracting services in the Middle East and North Africa, today announces the pricing of shares and global depositary receipts (GDR), each representing five shares, in its initial public offering (IPO) at $1.55 per share and $7.75 per GDR (the Offer Price).
The Offer and allocation have been structured to promote a strong aftermarket performance and ensure a solid base of broad and quality shareholders reflecting strong demand from both institutional and retail investors. Additionally, the structure has ensured the inclusion of interested long-term investors, both regionally and internationally.
Offering highlights
The Offering comprises 253,551,055 ordinary shares in the form of shares and GDRs, each representing five shares. Depa granted Morgan Stanley, UBS Investment Bank, Global Investment House and The National Investor an over-allotment option to purchase up to an additional 25,355,106 shares at the Offer Price (the 'Over-Allotment Option').
Based on the Offer Price and the number of shares in issue after the issue of new shares in relation to the Offering, the market capitalisation of the Company, assuming exercise of the Over-Allotment Option, will be over $1bn. Before the exercise of the over-allotment option, gross proceeds from the Offering will be approximately $393m and $432m assuming the Over-Allotment Option is exercised in full. The Offering represents 41% of the enlarged issued share capital of the Company (or approximately 43% if the Over-Allotment Option is exercised in full).
The strong interest in the company from a broad base of high quality international investors generated over five billion dirhams of demand at the Offer. The retail tranche was fully subscribed. Depa implemented a retail subscription process designed on a 'first come first served' basis and structured to eliminate the possibility of oversubscription and to ensure full subscription for the shareholders who were interested in participating.
Depa intends to use the net proceeds it receives pursuant to the Offering to acquire new companies operating in the interior contracting and procurement fields; acquire support manufacturers; establish new joineries and other manufacturing factories in new markets as well as markets in which it already operates; working capital needs; and other general corporate purposes.
The shares are expected to be listed on the Dubai International Financial Exchange ('DIFX') (ticker DEPA) and the GDRs are expected to be admitted to the Official List of the UK listing authority and to be admitted for trading on the regulated market for listed securities of the London Stock Exchange plc ('LSE') (ticker DEPA and DEPS). It is expected that listing on the DIFX and admission to trading on the LSE will become effective and unconditional dealings will commence on 23 April 2008. Dealings in Depa's shares prior to the listing on the DIFX will not take place. Conditional dealings of the GDRs on the LSE will not take place.
Morgan Stanley is acting as Sole Global Coordinator, Joint Bookrunner and Joint Lead Manager, UBS Investment Bank is acting as Joint Bookrunner and Joint Lead Manager and Global Investment House and The National Investor are acting as Joint Lead Managers.
Commenting on the announcement, Abdullah Al Mazrui, Chairman, Depa, said: 'We are delighted with the response we have received to the offering internationally having had great interest from the leading financial institutions around the world. This level of demand reflects the strength of Depa's management team, exceptional track record and excellent growth prospects.'
Mohannad Sweid, Chief Executive Officer, Depa, added: 'We are extremely pleased to have met our aims of ensuring that the IPO is as inclusive as possible, that we have been able to allocate a meaningful allocation to major investors, as well as promote a healthy and liquid aftermarket. Depa is a market leader operating in a thriving sector and we will continue to focus on generating value for our shareholders by growing organically and further acquiring businesses in new and existing markets that complement our vertical integration strategy.' (AME Info)
The Offer and allocation have been structured to promote a strong aftermarket performance and ensure a solid base of broad and quality shareholders reflecting strong demand from both institutional and retail investors. Additionally, the structure has ensured the inclusion of interested long-term investors, both regionally and internationally.
Offering highlights
The Offering comprises 253,551,055 ordinary shares in the form of shares and GDRs, each representing five shares. Depa granted Morgan Stanley, UBS Investment Bank, Global Investment House and The National Investor an over-allotment option to purchase up to an additional 25,355,106 shares at the Offer Price (the 'Over-Allotment Option').
Based on the Offer Price and the number of shares in issue after the issue of new shares in relation to the Offering, the market capitalisation of the Company, assuming exercise of the Over-Allotment Option, will be over $1bn. Before the exercise of the over-allotment option, gross proceeds from the Offering will be approximately $393m and $432m assuming the Over-Allotment Option is exercised in full. The Offering represents 41% of the enlarged issued share capital of the Company (or approximately 43% if the Over-Allotment Option is exercised in full).
The strong interest in the company from a broad base of high quality international investors generated over five billion dirhams of demand at the Offer. The retail tranche was fully subscribed. Depa implemented a retail subscription process designed on a 'first come first served' basis and structured to eliminate the possibility of oversubscription and to ensure full subscription for the shareholders who were interested in participating.
Depa intends to use the net proceeds it receives pursuant to the Offering to acquire new companies operating in the interior contracting and procurement fields; acquire support manufacturers; establish new joineries and other manufacturing factories in new markets as well as markets in which it already operates; working capital needs; and other general corporate purposes.
The shares are expected to be listed on the Dubai International Financial Exchange ('DIFX') (ticker DEPA) and the GDRs are expected to be admitted to the Official List of the UK listing authority and to be admitted for trading on the regulated market for listed securities of the London Stock Exchange plc ('LSE') (ticker DEPA and DEPS). It is expected that listing on the DIFX and admission to trading on the LSE will become effective and unconditional dealings will commence on 23 April 2008. Dealings in Depa's shares prior to the listing on the DIFX will not take place. Conditional dealings of the GDRs on the LSE will not take place.
Morgan Stanley is acting as Sole Global Coordinator, Joint Bookrunner and Joint Lead Manager, UBS Investment Bank is acting as Joint Bookrunner and Joint Lead Manager and Global Investment House and The National Investor are acting as Joint Lead Managers.
Commenting on the announcement, Abdullah Al Mazrui, Chairman, Depa, said: 'We are delighted with the response we have received to the offering internationally having had great interest from the leading financial institutions around the world. This level of demand reflects the strength of Depa's management team, exceptional track record and excellent growth prospects.'
Mohannad Sweid, Chief Executive Officer, Depa, added: 'We are extremely pleased to have met our aims of ensuring that the IPO is as inclusive as possible, that we have been able to allocate a meaningful allocation to major investors, as well as promote a healthy and liquid aftermarket. Depa is a market leader operating in a thriving sector and we will continue to focus on generating value for our shareholders by growing organically and further acquiring businesses in new and existing markets that complement our vertical integration strategy.' (AME Info)
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