Gulf Craft may IPO in a few years
Published: Tuesday, 12 March 2013
Gulf Craft has indicated it may go public within two to three years
The future plans of leading GCC yacht-builder include possibly going public within two or three years as Gulf equity market conditions improve. The company recently announced that it will be building its largest yacht to date, the Majesty 155.
News of the IPO became known through a Bloomberg Businessweek report and was revealed by chief operating officer, Erwin Bamps. He told Bloomberg that: “An initial IPO will be on the horizon probably in two, three years. In the meantime, we will expand our line of products, gain market share and build value in the brand and the corporate identity.”
The company had previously considered an IPO in 2006 before the downturn.
Bamps also revealed that the company’s revenue grew 20 percent last year and that it invested US$3 million on new machinery and products. He indicated that in the run-up to any IPO, Gulf Craft may disclose its financial results to the public. The company makes some 400 yachts a year across its three brands which range in size from the 8.5-metre Oryx 27 up to the 48-metre Majesty 155. Both yachts appeared at the recent Dubai International Boat Show.
New investment over the past two years at Gulf Craft’s superyacht build facility in Ajman has provided the capacity to construct yachts of up to 50 metres. Previously, the largest yacht in the Majesty range was 41 metres, of which one has been delivered and two are currently in build.