“We are looking at a vertical and horizontal growth strategy and have identified these companies in the GCC,” said Khaldoun Rashid Tabari.
“We are looking to buy out companies that ensure a steady supply of products such as pumps, grills, lights and so on. It also helps you to beat inflation.
“In terms of horizontal growth, we are looking for similar business in different areas, instead of going in from scratch in a country.”
The Dubai-based mechanical, electrical and plumbing contractor intends to fund its expansion plans with the Dh1.19 billion raised from its initial public offering (IPO), which closed on July 17 and was 101 times oversubscribed.
DSI announced yesterday that 45,600 subscribers applied for the IPO by offering Dh124bn.
Post-IPO, the company is looking to expand into Saudi Arabia, Qatar and Kuwait. “There will be a construction boom in Saudi Arabia similar to what we have seen in China and India. We want to be there, we want to develop it and we need our IPO money to be a part of it.”
Drake and Scull has already won a $200 million (Dh736m) project in Saudi Arabia through a joint venture with a company from the kingdom and will soon announce the details, said Tabari.
“While we can’t mention them at this stage DSI is also currently tendering for five jobs in the GCC and is looking at partnerships.”
The company is currently undertaking 32 projects in Dubai and Abu Dhabi and does not see a meltdown happening in Dubai.
“I think that we have a window of no less than five years.”