Logistics firm Tristar sets price range for second Dubai IPO in three years

Middle Eastern logistics firm Tristar Transport set the price range for its planned initial public offering in Dubai at Dhs2.20 to Dhs2.70 per share, in what would be only the financial hub’s second listing in three years.

The company plans to offer up to 24 per cent of its shares in the IPO, according to a statement on Sunday, valuing it at as much as Dhs3.24bn ($882m). The placement will include an issuance of 199 million new shares and a secondary offering of up to 88.8 million shares by existing shareholders.

Tristar could raise as much as Dhs777m from its secondary and primary offerings.

If priced at the top of the of the range, the IPO would be the biggest on Dubai’s main exchange since 2017, when Emaar Development raised $1.3bn. Since then, new offerings have languished amid shrinking volumes and delistings of major companies such as port operator DP World.

By contrast, Saudi Arabia’s stock exchange has seen the most activity for offerings in the Gulf, with retail and institutional investors boosting demand for IPOs. Companies in the kingdom have raised about $867m by selling new shares over the past 12 months.

Tristar operates in 21 countries across three continents, and provides transportation and storage services to customers including Abu Dhabi National Oil, Total SA and Dow Inc.

Proceeds from the primary component will be approximately Dhs438m to Dhs537m and the secondary component will be approximately Dhs90m to Dhs240m.

The offer period starts Sunday and will close on April 15.

The listing on the Dubai Financial Market is expected to take place on April 22, subject to market conditions and regulatory approvals.