Drake seeks acquisitions after IPO

CONTRACTOR EXPANSION: Drake & Scull International aims to raise $325 million from a Dubai share sale. (Getty Images)

Drake & Scull International, a provider of mechanical, electrical and contracting in the UAE, aims to raise $325 million from a Dubai share sale as it seeks to expand through acquisitions.

The contractor intends to list about 55 percent of the company on the Dubai Financial Market, Drake & Scull said in an emailed statement on Thursday.

It will use the proceeds from the sale to acquire companies that will allow it increase its presence throughout the Middle East and North Africa.

It also plans to gain more control over its supply chain by buying raw material suppliers.

"The UAE real estate sector is growing strongly and as a complete end-to-end MEP and civil contractor, Drake & Scull plays an integral part in many of the country’s most prestigious development projects,” said CEO Khaldoun Rashid Tabari.

Each share will be priced at one dirham, with a minimum subscription of 20,000 shares. The sale will commence on 8 July 2008 and will close on 17 July 2008.

The company will be capitalized at about $600 million. Al Mal Capital and HSBC Middle East are the joint lead managers for the IPO.

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