Global-Jordan Successfully Closed the Initial Public Offering for United Group Holdings

Published July 15th, 2008 - 03:42 GMT

Global-Jordan Successfully Closed the Initial Public Offering for United Group Holdings

Nabulsi: UGH is looking to create the largest one-stop-shop logistics and supply chain management company in Jordan.


Global Investment House-Jordan (Global-Jordan) announced today that it has successfully closed the Initial Public Offering (IPO) for United Group Holdings (UGH) at JOD44.8 million.

UGH issued 12.5 million new shares at a nominal price of JOD1.00 per share, to raise JOD12.5 million or 25 percent of the company’s total capital via public placement. The company’s founders provided JOD37.5, which is equivalent to 75 percent of the company’s total capital of JOD50 million.

Global-Jordan was the issue’s lead manager. All subscriptions were made through the branches of Jordan Kuwait Bank and Union Bank for Savings and Investments operating throughout Jordan.

Mr. Sami Al-Nabulsi, head of Investment Banking at Global-Jordan said, “The issue was oversubscribed by 3.6 times, and approximately 6.7 thousand subscribers participated in the issue. Due to the large size of subscriptions, the company will allot shares based on the allocation methodology mentioned in the issue’s prospectus”. 

UGH is considered is set to create the first integrated supply chain solutions and logistics service provider in Jordan through establishing and operating a land transport fleet, a group of storage and distribution facilities, a customs brokerage and clearing operator, and a land freight service provider.

It is worth mentioning that UGH will also provide its clients a selection of storage alternatives that include storage within controlled temperatures and in special facilities.

Mr. Nabulsi said, “The logistics sector in Jordan is relatively new, and there are not many specialized companies in the field. In light of growing demand for logistical services in addition to the Kingdom's strategic central location relative to Asia, Africa, and Europe, UGH believes that it will become a leader in the field and that it could grab a large portion of the market share compared to its rivals."

He further added, “UGH is looking to capitalize on the potential synergies between the companies to be created and acquired to create the largest one-stop-shop logistics and supply chain management company in Jordan, that would potentially grow into a major regional player by expanding into key regional markets, including neighboring Gulf countries, Syria, Iraq, and Lebanon."

Mr. Emad Al-Dahleh, Vice President of UGH’s Founder’s Committee, stated that “UGH’s vision is to become, within a short time span, at the forefront of its field in the Jordanian and regional markets alike.”

Mr. Al-Dahleh expressed his gratitude to Global-Jordan for all its efforts as the issue’s lead manager.  

Global-Jordan is fully owned by Global Investment House (Global), one of the leading asset management and investment banking companies in the GCC and the wider Middle East and North Africa (MENA) regions.

With over 45 employees and total assets exceeding JOD35 million, Global-Jordan is growing to be a full-blown investment company providing services in asset management, investment banking, wealth management, research, and brokerage. Global-Jordan’s Investment Banking division provides a wide array of services that include private placements, M&As, privatizations, financial advisory services, and initial public offerings (IPOs).


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