Dubai logistics firm Tristar drops IPO plans

DUBAI: Logistics firm Tristar has dropped plans for an initial public offering in Dubai due to insufficient demand from investors, two sources familiar with the matter told Reuters on Wednesday.

The move is a setback for Dubai's bourse, the Dubai Financial Market, which has not seen a big ticket listing since 2017.

Tristar began its public share sale on April 4, setting a price range that implied a market capitalisation of 2.64-3.24 billion dirhams ($719-$882 million).

The company saw weak demand for its shares, said the sources, who declining to be named as the matter is not public. The offering was planned to close on April 15.

Tristar was not immediately available to comment.

Part-owned by Kuwaiti logistics firm Agility, Tristar had previously intended to list in London, but plans were scrapped after turmoil at London-listed healthcare firm NMC shook investor confidence in Gulf companies.

Tristar said earlier this month it expected to raise between 438 million and 537 million dirhams as part of its primary offering, and another 90 to 240 million from a secondary offering.

BofA Securities and Citigroup were global coordinators and joint bookrunners on the deal.