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Dana Gas To Launch $500 Million IPO
Posted: 19 September 2005
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The Founders Committee of Dana Gas, the first regional private-sector gas resource company to offer shares to the public has announced details of its IPO of Dh 2.06 billion ($500million), having received the necessary regulatory approvals. The IPO, which represents 34.33 per cent of the Company’s capital, will open for public subscription on September 20 and will close on October 2.
The shares offered in the IPO are priced at a par value of Dh1 each, plus the customary one fils per share offering costs.
A statement by the Founders Committee said that nearly a third of the Offering, aggregating Dh 700 million, has been reserved for small investors who are citizens of the GCC. Each investor in this tranche will receive a planned guaranteed allocation of 3,000 shares in the public offer. To be eligible for the allocation in this tranche, small investors must apply for a minimum of 5,000 shares, with the maximum application fixed at 75,000 shares.
The other portion of the IPO aggregating Dh 1.27 billion will be allocated for “Wholesale Investors” of all nationalities. Application amounts from a minimum of Dh 150,000 up to the maximum Dh 2.06 billion will be permissible, with shares to be allocated in this tranche on a pro-rata basis. Separately, 90 million shares have been set aside for allocation to charitable causes.
HSBC is the Financial Advisor and Lead Manager for the IPO. A total of ten banks with widely dispersed branches have been appointed as the IPO Receiving Banks. These banks are: Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Union National Bank, First Gulf Bank, Mashreq Bank, Dubai Islamic Bank, Emirates International Bank, HSBC, Bank of Sharjah, and United Arab Bank.
HH Sheikh Ahmed bin Sultan Al-Qasimi, Deputy Ruler of Sharjah and Chairman of the Sharjah Petroleum Council, has been named the Honorary Chairman of the Company, and the first Board of Directors of the Company have been appointed with representation from all the member States of the GCC: Mr. Hamid Dhiya Jafar (Executive Chairman), Dr. Adel Khaled Al-Sabeeh (Vice-Chairman), Sheikh Sultan bin Ahmed bin Sultan Al-Qasimi, Sheikh Adib Abdullah Al-Zamil, Mr. Ahmed Rashid Al-Arbeed, Dr. Tawfeeq Abdul-Rahman Almoayed, Sheikh Khaled Abdul-Rahman Al-Rajhi, Mr. Khaled Nasser Al-Misnad, Mr. Rashad Mohammed Al-Zubair, Mr. Ziad Abdullah Galadari, Mr. Abdullah Nasser Al-Mansoori, Sheikh Abdulaziz Hamad Al-Jomaih, Mr. Majid Hamid Jafar, and Mr. Varouj Nerguizian.
Dana Gas is being established in Sharjah with existing assets in the supply, transportation, processing and marketing of natural gas, with plans to expand in this rapidly growing energy sector throughout the Gulf Region and the wider Middle East, including into upstream exploration and production, and downstream into gas-related industries.
The Founders of the Company have already subscribed for 65.67% of the Company’s Dh 6 billion capital, and comprise over 300 prominent individual and institutional investors from across the GCC, including members of ruling families, reputable business groups, financial institutions, and government investment arms.
After the IPO, Dana Gas plans to list its shares on the Abu Dhabi Stock Market (ADSM), with subsequent co-listings on other exchanges in the Region to follow.
Posted by Editor Pipeline Magazine
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