Emirates Post will initiate the IPO process next month by inviting bids for lead managers for the much-awaited public offer, according to a top official of the company.
Abdulla Al Daboos, director-general of Emirates Post, said a board meeting will be held next week to take stock of the privatisation process.
“Being a federal firm with a large network, spread over different regions and business interests from postal services and courier to money remittances, the pre-IPO exercise is bound to take time,” Daboos said.
He said the IPO will be managed by three lead managers out of which one will be an international investment bank. A fresh valuation will be undertaken by an internal team before any official moves are made on the IPO.
“The valuation of Emirates Post with a Dh400 million paid capital cannot be less than Dh3 billion because this was the valuation we had last year. Since then the company has grown substantially with new countries added to the coverage and new businesses,” Daboos said.
Though the law allows issuers to retain up to 70 per cent of the ownership, Emirates Post has opted to offer 49 per cent to the public through the IPO.
The board is keen to list the shares on local stock markets or even at both Dubai and Abu Dhabi exchanges.
Emirates Post to initiate IPO