Dubai-based fuel delivery firm CAFU is considering selling a stake in the company as it seeks to raise additional capital.
As reported by Bloomberg, the service provider is said to be working with Lazard, Inc, a financial advisory and asset management company, to facilitate the stake sale. Lazard recently opened an office in Abu Dhabi earlier this month, aiming to strengthen its presence across the MENA region.
Established in 2018 by Emirati businessman Rashid Al Ghurair, CAFU offers fuel delivery at the same rates as petrol stations and has expanded its operations to Canada.
News of the potential stake sale followed CAFU’s announcement that it would be introducing delivery charges, which had been previously suspended following the COVID-19 pandemic.
Diverse IPO Offering
Vijay Valecha, Chief Investment Officer at Century Financial, stated that a potential stake sale in CAFU would enhance the diversity of the UAE’s IPO pipeline.
“For newcomers to the UAE and Gulf digital tech start-up sector, CAFU’s business model has provided an excellent benchmark for transforming traditional businesses into modern online and digital platforms,” Valecha remarked.
Internationally, CAFU’s model has performed well in numerous markets, with Valecha highlighting North America as the largest market for such services, alongside players like Yoshi, Gaston, Ez Fill, Booster, and Fuelster, as well as traditional oil giants Shell and Mobil offering similar services.
In the UAE, a possible public listing by CAFU aligns with analysts’ observations that technology is emerging as a dominant theme in the short- to medium-term IPO landscape.
