Mohammed Al Fahim, Chief Executive Officer of Paris Gallery has said that they plan to make their stock market debut by making their Initial Public Offering.
“Our group has decided to IPO [because we want to maintain] a leading position and to be able to continue,” CEO Mohammed Ar Al Fahim, told Arabian Business.
He intends to carry out this plan under a positive pretense of the market status becoming an improved one near. In fact, Paris Gallery were in talks about their first IPO in 2008 but the plan was forced to be delayed due to the global crisis that struck; causing the economy to fall into a vulnerable state.
The sale of its shares would ensure the family-owned firm’s continuity and progress.
“The main reason for this is not to raise money but that would be a byproduct, which is very positive. Usually 70-90 percent of second and third generation will fail for many different reasons, so an IPO is a safety belt for us. An IPO would make us more transparent, more structured, more accountable and more effective,” Al Fahim said.
In recent light of the wake of the economic downturn, the amount of GCC-Family owned companies in the region looking to go public has increased swiftly. The total value of IPOs in the Middle East dropped 94.8 percent to its lowest in five years in the first quarter of 2011, Ernst & Young said in March.
One of the many Dubai-based retailers planning to make their stock market debut; Axiom Telecom was forced to abort its plans last year.