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Asyad Group, backed by Oman’s sovereign wealth fund, is looking to buy or operate ports in southeast Asia, India and Africa as it seeks a bigger share of the world shipping market.
The company is in talks to manage a port in Malaysia, Chief Asset Management Officer Ahmed Al Bulushi said in an interview, without providing details. It’s also chasing deals elsewhere in the continent and some are likely to be concluded next year, he said. The company will finance these internally, he said.
The firm with $4 billion of assets is keen to branch out from its Middle East base to play a larger global role as economic growth expands demand for shipping. Supply of container vessels is likely to rise both this year and next, according to an organization whose members account for more than half of the world’s fleet. Asyad’s shipping division owns or operates 91 vessels that transport crude, LNG, chemical products and other supplies.
“There are discussions and we’re looking to manage international ports whether in the Asian market, India or Africa or any other opportunity that we think is reasonable,” Al Bulushi said. “By having a port we can leverage our assets like shipping lines and we can capitalize on access to that market and that area.”
Asyad wants only majority stakes or full ownership because that suits its “strategic direction,” he said.
The company operates three of Oman’s major ports. Sohar in the north is an equal venture with the Port of Rotterdam, while Antwerp Port is a partner in Duqm and Maersk in Salalah. The company also provides a drydock and logistical economic zones, and is close to awarding a contract to build roads, utilities, warehouses and offices for the country’s first airport free zone, Al Bulushi said.
Shipping IPO
The company’s unit Asyad Shipping Co. is planning to sell shares in an initial public offering by the end of this year, he said, confirming a Reuters report that the firm has selected banks as advisers.
The group’s revenue increased at compound annual growth rate of 21% last year compared with the previous 12 months, mainly driven by shipping, Al Bulushi said.
“We aim to reduce the contribution of shipping by 2027 to close to 60%” by growing “the other verticals and by focusing more on Asyad Logistics,” he said. The company’s target is to increase the share of the logistics unit to as much as 40% of overall revenue, he added.
“We’re trying to redraw the supply chain map in the area,” Al Bulushi said. “Our strategy is to reach everywhere in the world.”
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