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Wed 6 Aug 2008 06:59 PM

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DSI completes IPO, looks toward expansion

UAE-based Drake & Scull International (DSI) – a pioneer in MEP and civil contracting in and around the Middle East and a new public joint stock company – recently completed the allocation of approximately 1.2 billion ordinary shares in its July 17 Initial Public Offer (IPO).

UAE-based Drake & Scull International (DSI) – a pioneer in MEP and civil contracting in and around the Middle East and a new public joint stock company – recently completed the allocation of approximately 1.2 billion ordinary shares in its July 17 Initial Public Offer (IPO).

According to Al Mal Capital and HSBC Middle East, joint lead managers for the IPO, approximately 45,000 subscribers applied for DSI shares, with total investments hovering around AED 124 billion.

Given the tremendous popularity of the IPO, DSI is expected to apply for its shares to be listed on the Dubai Financial Market after the Constitutive General Assembly convenes. If all goes well with the CGA, DSI can expect to begin trading its shares before the end of the year.

The IPO doesn’t put an end to DSI’s plans for strategic growth however. According to an announcement by a representative from DSI, proceeds from its IPO will be used to expand its presence in the MENA region.

Launched in 1966, DSI will pursue several methods of organic growth and strategic acquisitions to ultimately strengthen it market share in and around the Gulf. To that end, speculation within the DSI camp suggests that focus is narrowing on a shortlist of potential acquisitions.

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