Dubai: Logistics company TRUCKOMAN may come with an Initial Public Offering (IPO) this year or early next, adding to the country’s five IPO’s so far in 2014, the country’s capital markets regulator told Gulf News.
“This year we had five IPO’s and there is a small one coming up before the end of the year or beginning of next year,” Abdullah Al Salmi, executive president of Capital Markets Authority of Oman, told Gulf News.
“The company is called TRUCKOMAN, it’s a logistics company,” he said, divulging more details on the company.
TRUCKOMAN, which employs over 1,000 staff, is divided into in three core activities — oil and gas logistics, supply chain management and other logistics services — according to its website.
The year 2013 witnessed a record 23 deal IPO in the Middle East and North Africa, which raised $3 billion (Dh11 billion), an increase of 64 per cent in terms of volume and 51 per cent in value terms.
“We hope to see more IPO’s next year because we need liquidity, we need to expand our market, we need to expand the shareholders base,” said Al Salmi.
The series of IPOs mostly on the DFM has ended a drought for the past 5 years. Companies such as Marka, Emaar Malls Group have already been listed on the DFM, while others such as Dubai Parks and Resorts and Amanat are planning to list soon.
Hot money
Oman’s capital market would have to live with hot money that flows into its markets, as there is no mechanism to distinguish the type of money, he added.
“We have a lot of hot money, which comes and goes. We don’t have a mechanism to stop it, but we have to live with it and take it positively,” Al Salmi.
“Hot money is everywhere and you can’t be selective. If you open your door then everything would come in. Its up to you to monitor and prevent a negative impact that might happen due to this,” said Al Salmi.
In 2008, during the financial crises, the foreign investors started selling and that triggered the fall, which is normal as they have obligations elsewhere, he said.
In the local exchange, about 29 per cent of the total market capitalisation is owned by foreigners, which is the biggest in the world.
“Our markets are still attractive for foreign investors, we are a growing economy. There are still good opportunities for growth,” said Al Salmi.
Takeover code
The regulator is also in the process of formulating a takeover code, which is likely to come in by next year.
“We need to protect the minority shareholders. We are in the process of enacting a law regarding the takeover code and we hope that this law would come to light in the near future. This will allow minority shareholders a proper exit route,” he added.
