Gulf Capital plans to sell full stake in Gulf Marine Services

26 March 2014

Oil services business set to soon be included in FTSE 250 index

Gulf Capital plans to fully exit its stake in Gulf Marine Services (GMS), following the oil services company’s London Stock Exchange (LSE) debut on 14 March.

The Abu Dhabi-based private equity firm will sell its remaining 49.7 per cent stake in GMS to the public over a two-year period, Karim el-Solh, Gulf Capital’s co-founder and CEO, told reporters on 25 March.

The listing is expected to be included on the FTSE 250 soon, he added.

GMS raised $296m through its initial public offering (IPO), bringing its market capitalisation to $783m. It was priced at 135 pence a share, rising to 157.5 pence on 25 March.

The offering was primarily taken up by investors based in the UK, making up 68 per cent, while another 28 per cent was based in the Middle East.

“The capital raised through the IPO will help the company continue its new-build programme and expand its fleet into the GCC, the Mediterranean, and the Southern North Sea, as well as into other new and attractive global markets such as South East Asia and West Africa,” said Richard Dallas, managing director of private equity at Gulf Capital.

In total, GC Equity Partners Fund II – Gulf Capital’s flagship buyout fund - will receive more than $600m, marking a ten-fold increase on its original investment, said El-Solh.

He added that the alternative asset management firm is also looking at conducting two buyouts in the coming year, focusing on regional defensive industries. The company, which manages $2.5bn in assets, tends to  spend $50m to $75m on each transaction.

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