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Travel and events management firm Ambitions Enterprise Management (AEM) filed for an IPO on Nasdaq as the firm looks to shore up liquidity to fund its overseas growth plans, according to a preliminary prospectus. The move is pending final approval from the exchange.
About the company: AEM operates through its subsidiaries, Hunter Dubai and Multiple Dubai, across the UAE, Jordan, Qatar, Bahrain, Kuwait, Saudi Arabia, and Oman. The company specializes in corporate events and one-stop tourism offering fully integrated travel packages. It is registered in the Cayman Islands.
What’s up for grabs: The Dubai-headquartered tour operator plans to issue and float 1.5 mn new shares priced between USD 4-5 apiece — good for a 5.08% stake post-IPO. At the top of the range, the firm would lock in USD 7.5 mn in IPO proceeds, implying a market cap of up to USD 147.50 mn at listing, according to our calculations.
Use of proceeds: The company would use the proceeds to fund its expansion into Europe and Australia by acquiring local travel companies and establishing new subsidiaries. The funds will also support its development of what the company calls a “digital tourism robot” and cover the firm’s corporate expenses.
Post-IPO structure + lockup: The offering ensures that the company’s CEO and majority shareholder Zhengang Tang retains a controlling stake and majority voting power post-IPO. He will see his ownership diluted to a 69.75% stake down from 71.11%, which will remain on lockup for a period of six months from the first day of trading.
Hedging against potential share price fluctuations: The IPO includes a green shoe option (aka over-allotment option), granting underwriters a 45-day window to buy up to 225k additional shares at the same price.
A snapshot of its financials: The company’s net income stood at USD 113k in 1H 2024, up 62.8% y-o-y, and its revenue came in at 8.51 mn in the first half of last year, up 37.6% y-o-y. AEM has no formal dividend policy, and its board has full discretion over future payouts, subject to restrictions under Cayman Islands Law. The firm will opt instead to reinvest earnings into expansion and debt repayment.
ADVISORS- AC Sunshine Securities and Univest Securities are underwriters on the transaction.
Ambitions is not the only UAE firm eyeing the Nasdaq as of late: Dubai-based robotics startup Micropolis Holding made its debut on the New York StockExchange (NYSE) last week raising some USD 15.5 mn in IPO proceeds by floating a 12.9% stake. ADX-listed crypto miner Phoenix is also mulling a potential dual listing internationally, including potentially on Nasdaq, this year.
