M'Sharie, the private-equity investment arm of Dubai Investments, has partnered with Al Arif Investment to form a construction supplies and services company. Power Factor Electromechanical Works, the new joint venture, will offer mechanical, electrical and plumbing solutions and office automation systems for the construction industry. In June, Dubai Investments said it was considering listing a 30 per cent stake of M'Sharie on NASDAQ Dubai and trading the shares on the Dubai Financial Market (DFM).
The DFM requires that companies sell at least a 55 per cent stake to be able to list on that exchange. NASDAQ Dubai's requirement is a flotation of at least 25 per cent. If the plan materialises, M'Sharie shares will be sold in an initial public offering (IPO) by the end of June next year. The company said last month it had initiated the process for the M'Sharie IPO and was in discussions with local stock exchanges.
Power Factor will bring M'Sharie's investment holdings to 16. The new company will focus on developing advanced technology solutions suitable for a broad spectrum of markets including transportation, banking, telecommunications, defence, universities, hospitals and retail. It has already started commercial operations. "Power Factor is a strategic addition to our portfolio as M'Sharie already has several companies operating in the field of building materials and construction supplies and services," said Abdulaziz bin Yagub al Serkal, the chief executive of M'Sharie.
"It will further diversify the group's presence within the construction sector." M'Sharie was established in 1998 and is a fully owned subsidiary of Dubai Investments. It focuses on private-equity investments in medium and large establishments in the Middle East. Dubai Investments, the largest investment company listed on the DFM, reported net profit of Dh474 million (US$129m) for the first half of this year, down nearly 15 per cent from Dh556m during the same period last year.
aligaya@thenational.ae