Dubai’s Shuaa Capital plans two listings

Shuaa Capital, which oversees around $14bn in assets, is considering initial public offerings of two of its portfolio companies as Dubai’s efforts to revive its stock market gain traction among private businesses, according to people familiar with the matter.

The investment bank and asset manager has been in talks with the Dubai Financial Market about listing Stanford Marine Group and NCM Investment, the people said, asking not to be named because the information is confidential.

Shuaa is targeting early next year to list the two businesses and is in talks to hire investment banks as bookrunners, the people said. Combined, the two assets have a value of about Dhs2bn ($545m), they said.

Dubai said earlier this month that it wants to sell shares in utility Dubai Electricity and Water Authority as the first of 10 state entities to go public. The government is also encouraging private and family-owned businesses to follow suit. Information technology firm StarLink already pledged to go public early next year.

Dubai-based Shuaa declined to comment.

Dubai’s aggressive IPO plans have provided a boost to local stocks, which saw trading volumes and prices spike. The emirate’s push to deepen its capital market mirrors efforts in neighbouring Abu Dhabi and Saudi Arabia in recent years.

Stanford Marine Group, or SMG, operates a fleet of offshore supply vessels to the oil and gas industry. It also owns Grandweld, a shipyard serving marine clients, according to its website. Shuaa restructured the company at the start of this year by completing a Dhs1.13bn debt buyout.

The second IPO candidate – NCM Investment – is an online trading platform based in Kuwait that’s expanding in South and East Asia. It is a subsidiary of Kuwait-listed Amwal International Investment Company, which itself is owned by Shuaa.