Drake & Scull, Abu Dhabi Louvre Contractor Astonishing Сomeback IPO Analysis

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Drake & Scull International (DSI), a leading contracting and engineering firm, is making a significant comeback with an IPO on the Dubai Financial Market, offering up to 2.4 billion shares to raise AED 450 million for restructuring and growth.

Company Overview:

  • Specialization: General contracting, engineering services, projects in oil and gas, and water treatment.
  • Founded: 1966 in Abu Dhabi.
  • Size: Operations in multiple countries, including UAE, Kuwait, Egypt, Jordan, Algeria, and India; numerous global projects.
  • Revenue: AED 31 million for Q1 2024.
  • Notable Projects: The Louvre Abu Dhabi.
  • Background: DSI had a highly successful initial IPO in 2008, which was oversubscribed 101 times, attracting Dhs 124 billion ($34 billion) from 45,600 investors. Faced financial difficulties due to market downturns and geopolitical issues leading to a loss of Dhs 4.5 billion on revenue of Dhs 798 million in 2018, resulting in negative net equity of almost Dhs 4.75 billion. Trading in shares was suspended in November 2018 after these significant financial losses.
Drake & Scull, Abu Dhabi Louvre Contractor Astonishing Сomeback IPO Analysis
#Screenshot of the chart at investing.com

IPO Details

  • Date: April 25 to May 10, 2024.
  • Stock Exchange: Dubai Financial Market (DFM).
  • Shares Offered: Up to 2.4 billion new shares.
  • Price Range: AED 0.25 per share.
  • Prospectus Summary: The restructuring plan includes debt reduction strategies and plans for capital increase. The company successfully closed its subscription for new capital, raising over AED 450 million, which exceeded the minimum required to complete the restructuring process​​​​.
Drake & Scull, Abu Dhabi Louvre Contractor Astonishing Сomeback IPO Analysis
#Screenshot of NBD`s IPO investment portal

Financial Analysis

Key Financial Metrics:

  • Total Assets (as of December 31, 2023): AED 379.996 million
  • Total Liabilities (as of December 31, 2023): AED 4.462 billion
  • Revenue (2023): AED 93.843 million
  • Net Loss (2023): AED 368.052 million
  • Current Assets: AED 247.418 million
  • Current Liabilities: AED 247.891 million
  • Cash and Bank Balances: AED 72.205 million

Key Ratios:

  • Cash Flow Ratio: Negative, indicating liquidity challenges.
  • Debt-to-Equity Ratio: Extremely high due to accumulated losses and restructuring-related debts.
  • PE Ratio: Not applicable due to negative earnings.
  • PB Ratio: To be determined post-IPO based on revised book values and market valuation.
Drake & Scull, Abu Dhabi Louvre Contractor Astonishing Сomeback IPO Analysis
#Timothy Yiadom, unsplash.com

IPO Objectives

  • Proceeds Use: Increase share capital, invest in new projects, improve liquidity, and settle remaining debts. Specifically, the proceeds will enhance working capital, support operations, and potentially fund future acquisitions​​​​.
  • Strategic Focus: Rebuild operations, regain market confidence, and expand the project pipeline.

Market Demand

  • Public Interest: High demand; the subscription process exceeded the minimum capital required by one and a half times​​.
  • Institutional Interest: Likely supportive given the strategic importance and recent financial improvements.

Future Growth Prospects

  • Expansion Plans: Targeting new contracts in UAE and GCC; leveraging experience in large-scale projects.
  • Competitive Strategy: Regain key clients, enhance operational efficiency, secure profitable contracts.
  • Market Conditions: Favorable due to the construction boom in UAE, especially in Dubai​​​​.


Drake & Scull International’s IPO represents a significant turnaround effort. With the proceeds from the IPO, the company aims to strengthen its capital base, invest in new projects, and stabilize its operations, marking a crucial step towards recovery and growth. However, investors should consider the historical challenges and ongoing restructuring efforts when evaluating the IPO.


One thought on

Drake & Scull, Abu Dhabi Louvre Contractor Astonishing Сomeback IPO Analysis

  • Vasilii Zakharov

    The upcoming IPO of Drake & Scull International (DSI) in the Dubai financial market marks a significant comeback attempt for the contracting and engineering firm. Aiming to raise 450 million AED by offering up to 2.4 billion shares, DSI aims to fund restructuring efforts and future growth. The move could signal a renewed focus on the company’s core business and potential return to profitability. The success of the IPO will depend on investor confidence in DSI’s turnaround strategy and the broader economic outlook in the UAE.

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