Danube Building Materials, a UAE-based building supplies retailer, on Tuesday said it was looking at an initial public offering (IPO) listing in Saudi Arabia or the UAE within the next five years.
The company said its decision to go public was driven by significant growth which peaked in 2009 when it secured a total of AED1bn in annual turnover despite the challenges presented by the financial crisis.
With a view to hit AED2.5-3bn in the next three to four years, the company revealed that it was also open to dual listing in both countries.
With nine Danube BUILDMART stores currently in operation, the company has earmarked AED200m towards the expansion of its flagship retail brand to a total of 16 branches by the end of 2010.
The company is also looking into expanding further into other GCC construction hotspots, including Abu Dhabi in the UAE, Saudi Arabia, Bahrain, Oman and India.
Rizwan Sajan, chairman, Danube Building Materials, said: “It took a lot of courage to open nine stores last year in the midst of what was the worst situation for everyone in the construction sector.
“However, the expansion we have seen during this period further strengthened our position in the market and is encouraging us to float the company to access public equity markets in the UAE and Saudi markets.”
He added: “This year, we are targeting to secure 30 to 40 percent growth, and we are confident of the prospects given the region’s steady movement towards recovery.”
To date, there are a total of 20 global Danube retail facilities – 15 in the UAE, two in Oman, one each in Bahrain, Saudi Arabia and India, in addition to procurement offices in China and Canada.
The company has also invested AED50m in a new 1.3 million square feet manufacturing facility in TechnoPark, which will be functional by early 2011.
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