UAE-based vehicle rental company Massar Solutions is set to list on the Abu Dhabi exchange.

It is intending to sell 240,000,000 ordinary shares in the share capital of the company, representing 40 per cent of the company’s total issued share capital.

The initial public offering (IPO) is part of company’s expansion plans and it is the first firm of its type in the UAE to launch an IPO.

Subscription for shares will open on 11 January and close on 25 January. The offer price is AED2.40 a share.

The offering is split into two parts, with the first tranche of 48 million shares open to individuals who are UAE nationals.

The second tranche is open to UAE nationals and companies owned by UAE nationals, as well as public bodies and authorities of the UAE federal government. 

This second tranches comprises 192 million offer shares, which represents 80 per cent of the total offer.

Massar has been in operation in Abu Dhabi since 1998 and currently owns and operates a fleet of approximately 9,755 vehicles, including passenger and commercial vehicles.

The company’s current shareholders are Abu Dhabi Investment Company and Abu Dhabi National Energy Company, which currently own 51 and 49 per cent of the existing shares respectively.