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UAE’s deal-hungry IHC plans well being and IT enterprise IPOs

  • BUSINESS

  • Pure Well being IPO seen fetching over $1 billion, CEO says
  • Targets tech unit IPO in third quarter, with $1 bln belongings
  • Mulls IPO of Worldwide Power Holding subsequent yr
  • Plans purchases this yr and subsequent, looking for sizeable mortgage

ABU DHABI, Nov 24 (Reuters) – Worldwide Holding Firm (IHC.AD) plans to promote 20% of its expertise unit in an preliminary public providing subsequent yr, its CEO informed Reuters, including that the UAE’s IHC is aiming for a primary quarter IPO of Pure Well being to boost greater than $1 billion.

IHC, which rose from relative obscurity to turn into the United Arab Emirates’ largest publicly traded firm value greater than $200 billion, has been on a consolidation and acquisition drive.

This has led to 2 IHC subsidiaries rounding out the three largest firms on the Abu Dhabi Securities Change (ADX).

Requested about plans for Worldwide Expertise Holding (ITH), Chief Govt Syed Basar Shueb mentioned IHC will possible checklist 20% of it within the third quarter and is in talks with native companies about attainable acquisitions by the group born out of IHC’s IT sector holdings.

ITH was anticipated to show over half a billion dirhams ($136 million) and have $1 billion in belongings by the second quarter, Shueb mentioned.

IHC is a part of a enterprise empire missed by its chair, Sheikh Tahnoon bin Zayed al-Nahyan, who can also be the UAE’s nationwide safety adviser and has been a overseas coverage troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.

The agency, whose market worth is larger than firms corresponding to Shell, Disney and Nike, has been instrumental in boosting ADX’s measurement amid intensifying competitors with Saudi Arabia.

IHC, its subsidiary Alpha Dhabi, ADX’s second largest agency, and different IHC-linked firms have performed a number one position in a string of Abu Dhabi IPOs as cornerstone buyers.

Pure Well being, below Alpha Dhabi, goals to boost greater than $1 billion in a first-quarter IPO delayed from this yr.

“Will probably be greater than $1 billion, however the measurement will depend on how a lot we put available in the market. I do not suppose we are able to go above 10%, in any other case we’ll pull all of the liquidity from the market and it will have an effect on the opposite gamers ,” Shueb mentioned.

Pure Well being has performed a serious position within the UAE screening for COVID-19. Its merger with state-owned Abu Dhabi Well being Companies (SEHA), which Shueb mentioned has nearly 24,000 workers, is taking longer than anticipated, delaying the IPO.

IHC, which accomplished 4 IPOs this yr and plans the same quantity in 2023, has but to nominate banks for the Pure Well being IPO, Shueb mentioned, including it’s contemplating a attainable 2023 IPO of Worldwide Power Holding.

ACQUISITIONS

IHC, with pursuits from actual property to farming, mentioned its acquisition complete worth within the third quarter crossed 13.5 billion UAE dirhams, and it plans 70% extra globally over the following yr.

Shueb mentioned it’s in talks with worldwide banks for long-term financing for deliberate purchases in 2023, including this might be equal to a sizeable proportion of IHC’s money place.

Some IHC companies might finally difficulty their very own bonds, Shueb mentioned, with out giving additional particulars.

“We must create some debt on our steadiness sheet as nicely in order that we are able to proceed investing.”

IHC is taking a look at two potential investments in India every value greater than $2 billion, Shueb mentioned, after investing $2 billion in Adani Group firms in April.

It might announce as much as two worldwide acquisitions and purchase a UAE-listed hospitality agency earlier than the top of 2022.

“We’re taking a look at Colombia, and Asia – primarily Indonesia and India – these are the 2 main markets the place we function.”

This month, IHC’s bid to purchase a stake in Colombian meals producer Nutresa failed because it couldn’t safe the stake measurement it wished. Shueb mentioned IHC would proceed to search for alternatives in different Latin American international locations.

($1 = 3.6729 UAE dirham)

Reporting by Yousef Saba and Rachna Uppal; Enhancing by Alexander Smith

Our Requirements: The Thomson Reuters Belief Ideas.

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