Security firm to list in Dubai

 

Shenzhen-based China Security and Surveillance Technology (CSST) has been approved to list on the Dubai International Financial Exchange (DIFX), the first Chinese company to list on the bourse.

CSST listed on the New York Stocks Exchange in 2007 and will also be the first NYSE-listed company to have its shares traded in the United Arab Emirates, it said in a statement. It expects to list by Oct 13.

The move will provide us with wider market access and a significantly higher profile in the Middle East, Terence Yap, the company's vice-chairman and chief financial executive, said.

The company began in 2001 as a distributor of surveillance cameras, but a series of mergers and acquisitions in China helped it grow into the nation's largest provider of security and surveillance equipment and services. CSST said it now has about 10 percent of the market in China and is actively seeking opportunities to expand overseas.

From 2002 to 2006, it has maintained annual revenue growth of more than 50 percent. It expects 2008 revenue to exceed $400 million, up from $240 million for 2007. The company also said it expects China's security and surveillance market to grow by over 20 percent annually in the years ahead, citing estimates by the Chinese Security and Protection Association.

It will only seek listing status on the Dubai exchange, which will allow investors to buy its New York-listed shares, Yap said. The company will not raise funds through the listing, to avoid diluting the rights of existing shareholders.

The company first listed on the over-the-counter bulletin board market in the United States in 2005 and later upgraded to the New York Stock Exchange in 2007.

We are delighted that China Security and Surveillance Technology is the first company based in China to be approved for listing on the DIFX," Jeff Singer, chief executive officer of the DIFX, said. "The DIFX will provide the company with high visibility and an excellent regulatory and trading platform.

The DIFX opened in 2005 and is now the largest Islamic bond market, with 15 listed companies from countries such as Australia, Bahrain and the UAE.

Source:China Daily