UAE deal-hungry IHC plans health and IT business IPOs

ABU DHABI, Nov 24 (Reuters) – International holding company (IHC.AD) Its chief executive told Reuters it planned to sell a 20 percent stake in its technology unit in an initial public offering next year, adding that UAE-based IHC was aiming to raise more than $1 billion in Pure Health’s IPO in the first quarter.

IHC has grown from obscurity to become the largest public company in the United Arab Emirates, with a market capitalization of over $200 billion, and has been undergoing consolidation and acquisitions.

This has resulted in two of IHC’s subsidiaries being among the top three companies on the Abu Dhabi Securities Exchange (ADX).

Asked about the plans of International Technology Holdings (ITH), CEO Syed Basar Shueb said IHC may list its 20 percent stake in the third quarter and is talking with local companies about the birth of IHC’s IT unit holdings. Negotiations on possible acquisitions by the Group.

By the second quarter, ITH expects to have a turnover of more than AED5 billion ($136 million) and assets of $1 billion, Shueb said.

IHC is part of a business empire overseen by its chairman, Sheikh Tahnoon bin Zayed al-Nahyan Sheikh Tahnoon bin Zayed al-Nahyan is also the UAE’s National Security Adviser and has been an advisor to his brother, Sheikh Mohammed bin Zayed al-Nahyan. Nahyan’s foreign policy problem solver.

The company, which has a market capitalization higher than the likes of Shell, Disney and Nike, has been instrumental in scaling ADX amid growing competition with Saudi Arabia.

IHC and its subsidiaries, ADX’s second largest company, Alpha Dhabi, and other IHC-linked companies have played leading roles in a series of Abu Dhabi IPOs as cornerstone investors.

Alpha Dhabi’s Pure Health plans to raise more than $1 billion in a delayed first-quarter IPO this year.

“It will be more than $1 billion, but the size depends on how much we put into the market. I don’t think we can exceed 10%, otherwise we will withdraw all liquidity from the market, and this will affect other players,” Schub said.

Pure Health has been instrumental in COVID-19 screening in the UAE. Its merger with state-owned Abu Dhabi Healthcare Services Company (SEHA) has taken longer than expected, delaying the IPO.

IHC completed four IPOs this year and plans a similar number in 2023, but has not named a bank for the Pure Health IPO, Shueb said, adding that it was considering a possible 2023 IPO ​​​​IPO International Energy Holdings.

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IHC, which operates in real estate and agriculture, said its acquisitions totaled more than AED13.5 billion in the third quarter and plans to increase that by 70 percent globally next year.

Shueb said it was in talks with international banks for long-term financing of the planned purchase in 2023, adding that this would represent a sizable portion of IHC’s cash position.

Some IHC businesses may eventually issue their own bonds, Shueb said, without providing further details.

“We also have to add some debt to our balance sheet so we can keep investing.”

IHC is considering two potential investments in India worth more than $2 billion each, Shueb said. $2 billion in the Adani group of companies in April.

It could announce up to two international acquisitions and buy a UAE-listed hotel company by the end of 2022.

“We are looking at Colombia and Asia – mainly Indonesia and India – the two main markets in which we operate.”

This month, IHC bids for a stake in Colombian food producer Nutresa Failure Because it couldn’t get the required stake size. Shueb said IHC will continue to look for opportunities in other Latin American countries.

($1 = 3.6729 UAE Dirhams)

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

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