Logistics company Tristar is to float on the Dubai Financial Market with a view to raising up to $160 million for a 24 per cent stake.
The company, based in the Jebel Ali Industrial Area, was founded in 1998 as a road transport business but has evolved to become a partner to major national and international oil firms. It is expected to list its shares next month.
“I am proud to have witnessed the evolution of Tristar from a local road transportation business into a global world-class integrated energy logistics solutions provider,” Eugene Mayne, group chief executive of Tristar, said.
“Tristar’s IPO marks an exciting milestone in the group’s story as we continue to grow, innovate and shape the future of the logistics industry.”
Tristar’s float will be the first on the Dubai Financial Market since Emaar Properties listed its real estate development arm in 2017.
The shares are being sold by the company’s three significant shareholders: Kuwait-based logistics group Agility, Gulf Investment Corporation and a vehicle owned by Mr Mayne, which own 65.12 per cent, 19.61 per cent and 15.27 per cent of the shares, respectively.
Tristar has a fleet of more than 2,000 lorries and 35 maritime vessels. It operates 69 fuel farms and more than 100 remote sites in 21 countries across three continents.
The company, which was founded by Mr Mayne, has grown revenue by an average 12.4 per cent over the past three years to $453.4m by 2020, on which it made earnings before interest, tax, depreciation and amortisation of $103.6m.
“Our business, which enjoys a strong reputation, developed through years of operational excellence, underpinned by a customer-centric model, and a commitment to the highest quality and safety standards, has become a trusted logistics partner for major oil companies globally,” Mr Mayne said.
It plans to use some of the proceeds of the float to repay Dh197m ($53.6m) of debts to related parties as it looks to reduce current net debt-to-ebitda levels of 3.5x as at the end of last year to 2.2x-2.5x.
It paid a dividend of $29.6 million to shareholders last year, including a special $19.6m pre-IPO dividend. For its 2021 financial year, the company said it is targeting a pay-out ratio of 60-70 per cent of net income. In the following years, it expects to pay about 60 per cent of net income as a dividend.
Updated: March 23, 2021 08:52 AM