Dubai logistics firm Tristar’s IPO withdrawal could force rethink by others

Dubai logistics firm Tristar’s IPO withdrawal could force rethink by others

Dubai: Dubai businesses planning an IPO will have a rethink after Tristar, the logistics company, decided to pull out from its stock float. Tristar was planning to list on DFM next week and hoping to raise between $120 million to $160 million. The funds thus raised were to be used to clear off a Dh197 million debt it had on the books. In a statement Wednesday (April 14) evening, Tristar gave this statement: "The board and existing shareholders believe that greater returns can be realised executing Tristar's current growth strategy under the established shareholder structure." If it had gone ahead, this would have been only the second IPO on DFM in three years. Just recently, in January, Al Mal Capital REIT raised Dh350 million (as against the initial target of Dh500 million). DFM is currently seeing the de-listing process of DXB Entertainments, the theme parks operator, by Meraas. And in March, Emaar Properties confirmed it is bringing Emaar Malls back into the fold, which will mean that too will be de-listed. "There will likely be a pause on any new IPO plans," said Vijay Valecha, Chief Investment Officer at Century Financial. About Tristar, "I think it was just a lack