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

  • Pure Health IPO seen fetching more than $1 billion, CEO says
  • Tech unit targets IPO in 3rd quarter, with $1 bln assets
  • Mulls IPO of International Energy Holding next year
  • Purchase plans this year and next, looking for a large loan

ABU DHABI, Nov 24 (Reuters) – International Holding Company ( IHC.AD ) plans to sell 20% of its technology unit in an initial public offering next year, its CEO told Reuters, and added that the UAE’s IHC is aiming for Pure Health’s first quarter IPO to raise more than $1 billion.

IHC, which rose from relative obscurity to become the largest publicly traded company in the United Arab Emirates valued at more than $200 billion, is on a consolidation and acquisition drive.

This led to two IHC subsidiaries surrounding three major companies on the Abu Dhabi Securities Exchange (ADX).

Asked about plans for International Technology Holding (ITH), Chief Executive Syed Basar Shueb said IHC is likely to list 20% of it in the third quarter and is in talks with local companies about possible acquisitions of the group. which was born out of IHC’s IT sector assets.

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ITH is expected to turn over half a billion dirhams ($136 million) and have $1 billion in assets in the second quarter, Shueb said.

IHC is part of a business empire managed by its chairman, Sheikh Tahnoon bin Zayed al-Nahyan, who is also the national security adviser of the UAE and has been a foreign policy troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan. .

The company, whose market value is greater than companies such as Shell, Disney and Nike, has been instrumental in increasing the size of the ADX amid intensifying competition in Saudi Arabia.

IHC, its subsidiary Alpha Dhabi, the second largest ADX company, and other companies linked to IHC played a leading role in a series of IPOs in Abu Dhabi as foundation investors.

Pure Health, under Alpha Dhabi, aims to raise more than $1 billion in a first-quarter IPO that has been delayed from this year.

“It will be more than $ 1 billion, but the size depends on how much we put in the market. I think we will not exceed 10%, otherwise we will take all the liquid from the market and it will affect of other players. ,” said Shueb.

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Pure Health is playing a major role in screening in the UAE for COVID-19. Its merger with state-owned Abu Dhabi Health Services (SEHA), which Shueb said has around 24,000 employees, took longer than expected, delaying the IPO.

IHC, which has completed four IPOs this year and plans a similar number in 2023, has not yet appointed banks for the Pure Health IPO, Shueb said, adding that it is considering a possible 2023 IPO of International Energy Holding.

ACQUISITIONS

IHC, which has interests ranging from real estate to farming, said its total acquisition value in the third quarter exceeded 13.5 billion UAE dirhams, and it plans 70% more than worldwide next year.

Shueb said it is in talks with international banks for long-term financing for the planned purchases in 2023, adding that it is equivalent to a large part of IHC’s cash position.

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Other IHC businesses will eventually issue their own bonds, Shueb said, without providing further details.

“We also have to create a debt on our balance sheet so we can continue to invest.”

IHC is looking at two potential investments in India each worth more than $2 billion, Shueb said, after investing $2 billion in Adani Group companies in April.

It may announce up to two international acquisitions and buy a UAE-listed hospitality company before the end of 2022.

“We are looking at Colombia, and Asia – primarily Indonesia and India – these are the two major markets where we operate.”

This month, IHC’s bid to buy a stake in Colombian food producer Nutresa failed because it could not secure the size of the stake it wanted. Shueb said IHC will continue to look for opportunities in other Latin American countries.

($1 = 3.6729 UAE dirham)

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

Our Standards: The Thomson Reuters Trust Principles.

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