Deal-hungry UAE IHC plans IPOs of healthcare and IT businesses

  • Pure Health’s IPO is expected to raise more than $1 billion, CEO says
  • Tech IPO targets in Q3 with $1bn in assets
  • It is considering an IPO of International Energy Holding next year
  • Planning purchases this year and next year, looking for a substantial loan

ABU DHABI, Nov 24 (Reuters) – International Holding Company ( IHC.AD ) plans to sell 20 percent of its technology division in an initial public offering next year, its chief executive told Reuters, adding that the UAE’s IHC was seeking to Pure Health’s first-quarter IPO to raise more than $1 billion.

IHC, which has risen from relative obscurity to become the largest publicly traded company in the United Arab Emirates, valued at more than $200 billion, is in the process of consolidation and acquisition.

This resulted in two IHC subsidiaries rounding out the three largest companies on the Abu Dhabi Stock Exchange (ADX).

Asked about plans for International Technology Holding (ITH), CEO Syed Basar Shueb said IHC is likely to list 20% of it in the third quarter and is in talks with local firms about possible acquisitions from the group formed by IHC’s holdings in the IT sector .

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

IHC is part of a business empire led by its chairman, Sheikh Tahnun bin Zayed al-Nahyan, who is also the UAE’s national security adviser and was a foreign policy aide to his brother, President Sheikh Mohammed bin Zayed al -Naughty.

The firm, whose market capitalization is larger than the likes of Shell, Disney and Nike, contributed to the ADX’s size increase amid intensifying competition from Saudi Arabia.

IHC, its subsidiary Alpha Dhabi, ADX’s second-largest firm, and other IHC-related companies have played a leading role in a series of Abu Dhabi IPOs as cornerstone investors.

Pure Health, led by Alpha Dhabi, aims to raise more than $1 billion in an IPO in the first quarter, which has been delayed from 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 go above 10%, otherwise we will pull all the liquidity out of the market and that will affect the other players,” Schub said.

Pure Health has played a major role in screening for COVID-19 in the UAE. Its merger with state-owned Abu Dhabi Health Services (SEHA), which Shueb says has almost 24,000 employees, is taking 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 International Energy Holding IPO in 2023 Mr.

ACQUISITIONS

IHC, with interests from real estate to agriculture, said its total acquisition value in the third quarter exceeded AED 13.5 billion and plans 70% more globally next year.

Shueb said it was negotiating with international banks for long-term financing for planned purchases in 2023, adding that it would be equivalent to a significant portion of IHC’s cash position.

Some IHC businesses could eventually issue their own bonds, Shueb said, without elaborating.

“We’ll also have to create 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, Schueb 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’re looking at Colombia and Asia – primarily Indonesia and India – those are the two main markets we operate in.”

This month, IHC’s attempt to buy a stake in Colombian food maker Nutresa fell through after failing to secure the stake it wanted. Shueb said IHC will continue to look for opportunities in other Latin American countries.

($1 = AED 3.6729)

Reporting by Youssef Saba and Rachna Uppal; Edited by Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

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