The Middle East’s largest chemical distributor has no plans to file for an initial public offering until 2022, its chief executive has said.
“We are watching the IPO market, but this is not the time to do it. The markets are not ready at all, they will erode our value.” said Yogesh Mehta, CEO, Petrochem.
“We see the demand supply situation and want to instead grow organically. So not until 2022,” he added.
Petrochem will however look to acquire companies over the mid-term. “What we’re looking for are chemical specialty companies in the $100-150million range. We’re exploring markets right now that could be lucrative for us,” said Mehta.
Founded by Mehta in 1995, Petrochem generates $1.4 billion in annual turnover. Its storage terminal in Jebel Ali Freezone in Dubai is considered among the most sophisticated facilities of its kind in the world and something the company could look to build on elsewhere in the future.
“We may build storage terminals around the Middle East and maybe Egypt. If we do that we could distribute further. I don’t have concrete plans but we’re looking at it because being able to distribute multiple products closer to our markets would increase our value,” he added.
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