UAE’s deal-hungry IHC plans health and IT business IPOs

ABU DHABI, Nov 24 (Reuters) – Worldwide Holding Firm (IHC.AD) plans to promote 20% of its know-how 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 lift greater than $1 billion.

IHC, which rose from relative obscurity to develop 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 corporations on the Abu Dhabi Securities Change (ADX).

Requested about plans for Worldwide Know-how Holding (ITH), Chief Government Syed Basar Shueb mentioned IHC will probably record 20% of it within the third quarter and is in talks with native companies about potential 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 property by the second quarter, Shueb mentioned.

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

The agency, whose market worth is greater than corporations equivalent to Shell, Disney and Nike, has been instrumental in boosting ADX’s dimension amid intensifying competitors with Saudi Arabia.

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

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

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

Pure Well being has performed a significant position within the UAE screening for COVID-19. Its merger with state-owned Abu Dhabi Well being Providers (SEHA), which Shueb mentioned has virtually 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 potential 2023 IPO of Worldwide Power Holding.

ACQUISITIONS

IHC, with pursuits from actual property to farming, mentioned its acquisition whole 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 ultimately challenge their very own bonds, Shueb mentioned, with out giving additional particulars.

“We must create some debt on our steadiness sheet as effectively 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 corporations in April.

It could 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 dimension it wished. Shueb mentioned IHC would proceed to search for alternatives in different Latin American international locations.