By Stanley Carvalho
Abu Dhabi firm awaiting new UAE companies' law that will allow it to sell less than 55% stake, GM says.
Reem Emirates Aluminium Company, a producer of aluminium panels, said on Wednesday it plans to sell shares to the public next year to help expand its business overseas.Reem, which is owned by a member of Abu Dhabi's ruling family through parent company, the Royal Group, is awaiting a new law in the UAE that would allow it to sell less than a 55% stake, General Manager Derek Bruce told reporters.
"We plan to float a certain percentage of the company in 2009," Bruce said. "We are waiting for the new law to come out and then we will decide what percentage to offer."
Reem produces about 60,000 square metres of aluminium panels a month and also makes light emitting diode (LED) panels in the US. LEDs are commonly used as small indicator lights on electronic devices and increasingly for torches and area lighting.
Bruce said Reem plans to build a solar panel manufacturing plant in the Gulf emirate.
"We have plans to go global and having the IPO (initial public offering) and cash injection will help our expansion," Bruce said.
PricewaterhouseCoopers is advising Reem on the IPO, Bruce said, adding that it had valued the firm at 1.2 billion dirhams ($326.8 million).
Sales for the first five months of the year have reached 800 million dirhams with the firm expected to post sales of 1.5 billion by year-end as it taps into Abu Dhabi's construction boom.
Royal Group is a conglomerate of about 40 companies working in sectors ranging from industry to real estate and information technology, according to Reem's website. (Reuters)