Asyad Group to Offer 20% Stake in Its Shipping Company via IPO

Asyad Group, one of Oman’s largest integrated logistics providers (specializing in maritime, land, and air logistics), has announced its plan to launch an initial public offering (IPO) of at least 20% of the shares of Asyad Shipping, its shipping subsidiary, on the Muscat Stock Exchange (MSX). This move aligns with Asyad Group’s strategy to drive operational growth, diversify its business portfolio, and achieve long-term sustainability.

About Asyad Group

Established in 2016, Asyad Group is a global provider of integrated logistics services (maritime, land, and air logistics) and ranks fourth on Forbes’ list of the “Top 10 Logistics Companies in the Middle East and North Africa.” With assets valued at approximately $4 billion and backed by $26 billion in government infrastructure investments, Asyad attracts customers and investors seeking to capitalize on Oman’s advanced logistics infrastructure and production capabilities.

Asyad Group operates world-class assets, including three deep-water ports, one dry port, two free zones, one economic zone, and an extensive road network. Its services also include “Asyad Express,” offering end-to-end solutions, from a 3,000 sqm fulfillment center to fast delivery services catering to financial, e-commerce, manufacturing, and other sectors.

By leveraging its diverse and integrated logistics assets, Asyad optimizes its competitive value to meet market demands and support Oman’s economy while positioning the Sultanate as a global logistics hub. The group unites 16 logistics companies and joint ventures under one umbrella to improve efficiency, create synergies, and benefit from economies of scale. SOURCE About Asyad Group

Key IPO Details

1. Share Allocation: At least 20% of Asyad Shipping’s total shares.
2. Listing Exchange: Muscat Stock Exchange (MSX).
3. Investor Categories:
   • Institutional Tranche (75%): Open to local and international institutional investors.
     • Anchor Investors: 30% of this tranche is reserved for anchor investors.
   • Retail Tranche (25%): Dedicated to retail investors in Oman.
4. Timeline: The subscription period is expected to commence in February 2025, subject to approval by the Financial Services Authority.
5. Flexibility in Share Adjustment: The selling shareholder retains the right to adjust the number of shares offered at any time before the end of the subscription period, in coordination with regulatory authorities.
6. Offering Document: Further details, including terms and conditions, will be disclosed in an offering document to be published before the subscription period begins.

Asyad Shipping at a Glance

Founded in 2003, Asyad Shipping is one of the world’s largest providers of integrated maritime solutions, serving over 60 countries with a fleet of 89 multipurpose vessels. The company specializes in servicing key growth markets in Asia, the Middle East, North Africa, Europe, and the Americas.

Asyad Shipping plays a vital role in Oman’s integrated logistics network, connecting ports, economic zones, and free zones to streamline exports and imports while enhancing supply chain efficiency. Its services span container shipping, bulk cargo, crude oil, gas, and specialized shipping solutions.

The company’s commitment to sustainability is reflected in its efforts to reduce carbon emissions and its plans to introduce environmentally friendly LNG carriers. Asyad Shipping has also partnered with leading global clients, fostering long-term commercial relationships that bolster its leadership in the maritime shipping industry.

Key Financial and Operational Achievements

1. Strong Financial Growth:
   • CAGR for Revenue: 21% from 2021 to 2023.
   • CAGR for Net Profit: 73% during the same period.
   • 2023 Revenue: $944.7 million.
   • 9M 2024 Revenue: $713.9 million.
2. Global Reach:
   • Fleet: 89 multipurpose vessels with a combined capacity exceeding 9.5 million DWT (as of September 2024).
   • Geographic Coverage: Serving over 60 countries with a significant presence in Asia, Africa, Europe, and the Americas.
3. Environmental Commitment:
   • Reduced carbon intensity by 2% annually.
   • Plans to deploy eco-friendly LNG carriers.

IPO Management and Strategic Partners

• Lead Issue Manager: Sohar International Bank.
• Global Coordinators:
  • Oman Investment Bank.
  • EFG Hermes.
  • Jefferies.
  • JP Morgan.
• Joint Bookrunners: Crédit Agricole and Société Générale.

Strategic Vision and Long-Term Goals

1. Expanding Market Share:
   • Strategic fleet expansion with investments planned between $2.3 billion and $2.7 billion.
   • Targeting emerging markets in renewable energy and green hydrogen sectors.
2. Sustained Growth:
   • Aiming to achieve 2.5x net leverage by 2025.
   • Maintaining a robust dividend policy to deliver shareholder value.
3. Enhancing Oman’s Global Position:
   • Establishing Oman as a regional logistics hub.
   • Aligning with Oman Vision 2040 to diversify the economy and support sustainable development.

Importance of the IPO

This IPO provides a unique opportunity for domestic and international investors to participate in one of the largest and most diversified maritime shipping companies in the region. By leveraging Oman’s logistics infrastructure and commitment to sustainability, the offering supports economic diversification goals and enhances Oman’s standing as a global logistics hub. It also marks a pivotal step toward realizing Oman Vision 2040.