Utico, a UAE’s utility firm, plans a share buyback ahead of its initial public offering (IPO) and stock market listing later this year.
The privately-owned firm is in talks with six banks for the IPO and listing.
“As part of the IPO preparations, shareholding changes are underway where consolidation is ongoing,” said Richard Menezes, Founder and Managing Director of Utico.
“Talks are ongoing with a major Fund and an investor to acquire the firm 100 percent from its current investors and take it for an IPO in Q4 this year.”
Menezes said the appetite for growth and market potential was only limited by risk vs reward. Like-minded investors are backing the move to take the company forward, he said.
Utico is a DNV UK rated Sustainable Company.
Utico is seeking primary listing on the Dubai Financial Market (DFM) and may consider a dual listing after discussing with the board and shareholders.
Meanwhile, Utico is engaging with Goldman Sachs, HSBC, Standard Chartered, Emirates NBD (ENBD), First Abu Dhabi Bank and Citi for the IPO and a potential listing, the statement said.
Utico is the UAE’s largest full service private utility. It supplies utilities with direct metering in four emirates as retail and bulk supply, through its own transmission and distribution network spanning a 800 sq m area with over 250,000 population. It owns and operates a 600 km network with approximately 1 million cu m of water in operation and development and over 4million cu m of development in active pipeline. It employs fulltime about 600 professionals.