Jordan Post’s 100th anniversary
Time to go public?
In 2000, the German Deutsche Post goes public in Frankfurt (DPW:GR) and two years later acquires DHL.
In 2013, the 500 year old British Royal Mail had its shares float on the London Stock Exchange (RMG:LN).
100 years after its founding1, Jordan Post is facing an embezzlement scandal2 and is struggling to catch up to its competitors (126 companies and operators in Jordan now offer postal services). Maybe it is time the company goes public and rebuild its core business?
Financial Data
Compared to its international counterparts, Jordan Post’s revenue is tiny.
Data doesn’t include employee data from Jordan Postal Savings Fund.
Like many of the government’s public services, Jordan Postal Company is a loss making unit.
Source: SDC
Despite having a paid up capital of 14 million, its total liabilities now exceed its assets, accumulating too much debt:
Income breakdown:
Source: GBD
Start Your Engines
With 273 branches located all across the Kingdom, the Jordan Post has an advantage over other delivery firms. It could provide its current services and add new ones (financial, legal and communication) to remote areas to help the residents have access.
The newly revamped Postal Company could :
Sign a strategic partnership with Aramex (Aramex could become a major investor) to access international markets
Strengthen its local network to facilitate and expedite package shipping (to help small businesses ship their goods locally at low cost)
Invest in a hybrid or electric fleet for delivery (the last two could be part of Jordan’s strategy in reducing GHG)
The Strategic plan from 20173 made a SWOT analysis of the company’s situation and with new management and new capital, it could diversify its services and revenues, became relevant again and maybe turn a profit.
Privatisation has become a dirty word in Jordan. A successful IPO from Jordan Post could prove the public opinion wrong.
https://trc.gov.jo/Pages/viewpage?pageID=252
https://alghad.com/6-13/
https://jordanpost.com.jo/en/wp-content/uploads/2018/12/The-strategic-plan-for-years-2017-2019.pdf