Dubai-based Gulf Navigation Holding is to increase the company’s capital by over AED 448 million (US$121.9 million), taking the group’s total share capital to AED 1 billion (US$ 272.6 million). This will be achieved through an Initial Public Offering (IPO) that will be launched in the first quarter of this year, to enable Gulf Navigation’s expansion plans to progress.
The IPO will complement the group’s existing commitment to introduce a US$ 250 million Islamic Sukuk, in stages, to finance investments. The company says this particular finance tool will provide additional cash flow to enhance the efficiency of its expansion projects.
The company intends to double the size of its fleet to 20 vessels by 2020 and to diversify business activities, into areas such as ship repair and ship agency, to become a ‘one stop shop’ provider of shipping and maritime services.
Khamis Juma Buamim, managing director and group chief executive, points out that many GCC countries are committed to increase the petroleum and petrochemical production sector significantly over the next few years, while many leading petrochemical companies in the region are investing in additional refinery capacity. He says, “We are confident we have the required expertise to win a large share of this market and we plan to be ready by having the capabilities, and fleet size, to keep up with this expansion.”
Gulf Navigation Holding is the only maritime and shipping company listed on the Dubai Financial Market. Its headquarters in Dubai are supported by branch offices in Fujairah, Khorfakkan, Abu Dhabi and in Saudi Arabia, and the company currently operates a fleet of chemical tankers and offshore support vessels.