The share offering will be open only to nationals and there is expected to be a minimum guaranteed share allocation. The IPO will take the form of a 49 per cent capital increase, with the Abu Dhabi government retaining a 51 per cent stake in the company. The key project being undertaken by Arkan is the establishment of a greenfield cement plant in Fujairah (MEED 24:3:05).
Abu Dhabi-based International Petroleum Investment Company (IPIC) has also announced plans for an IPO, although advisory mandates have not yet been awarded. A stake of 10-20 per cent is expected to be sold to nationals. IPIC invests in international hydrocarbons assets and owns stakes in Austria’s AMI Agrolinz Melamine International and Copenhagen-based Borealis (Oil & Gas, MEED 25:11:05).
The planned IPO forms part of a wider trend for GCC governments to sell shares in non-core oil and gas assets to the public. HSBC and Global Investment House have a mandate to arrange an IPO of shares in Kuwait Foreign Petroleum Exploration Company (Kufpec MEED 24:3:06).