UAE-based vehicle rental company Massar Solutions has confirmed the postponement of its initial public offering (IPO), citing volatile oil prices as the reason for the decision.

The company was due to list on the Abu Dhabi Securities Exchange (ADX) and was expected to kick-start this year’s IPO market in the emirate.

In an official statement, the company said that due to current uncertain markets, some investors were unable to submit their applications within the offer period, resulting in an “insufficient level” of applications.

The shareholders of the company decided it was better to delay the IPO until oil prices stabilise. Massar’s current shareholders are Abu Dhabi Investment Company and Abu Dhabi National Energy Company (Taqa), which currently own 51 and 49 per cent of the existing shares respectively.

“With market conditions as they are, it is clearly in everyone’s interests to wait until things improve,” says Paul Greenwood, CEO of Massar.

He says that due to the increased publicity surrounding the company, he remains “confident” about the company’s prospects.

The IPO was launched in early January, with the subscription period closing on 25 January. The shareholders were set to sell 40 per cent of their ordinary shares to UAE investors.

The 240 million shares were priced at AED2.4 (65 cents) a share.