Shuaa seen swinging to profit in Q4 – CEO
The mandates for IPOs were in the healthcare, consumer and food product sectors-says CEO.
October 20, 2010 8:36 by Reuters
Investment bank Shuaa Capital expects to swing to a profit in the fourth quarter and has mandates for five initial public offerings in the United Arab Emirates, its chief executive said on Tuesday.
Sameer al-Ansari told the Reuters Middle East Investment Summit in Dubai on Tuesday the mandates for IPOs were in the healthcare, consumer and food product sectors.
The IPOs could be concluded in 2011, while a planned IPO for an Abu Dhabi-based infrastructure firm may instead be a private placement, he said.
Ansari also said the firm, which reports third-quarter results in November, does not expect provisions or impairments in the quarter.
Shuaa, 48.4 percent owned by the ruler of Dubai, posted a second-quarter loss of 56.6 million UAE dirhams ($15.41 million), hit by a fall in the value of its investments and dwindling trading volumes.
Ansari, who has been focused on divesting Shuaa’s legacy portfolio after taking the helm in September 2009, said there were 300 million dirhams in assets for sale. (Reporting by Tamara Walid; Editing by David Holmes)