ABU DHABI, Nov 24 (Reuters) – International Holding Company (IHC.AD) plans to promote 20% of its expertise unit in an preliminary public providing subsequent yr, its CEO advised Reuters, including that the UAE’s IHC is aiming for a primary quarter IPO of Pure Health to boost 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 greatest firms on the Abu Dhabi Securities Exchange (ADX).

Asked about plans for International Technology Holding (ITH), Chief Executive Syed Basar Shueb mentioned IHC will doubtless checklist 20% of it within the third quarter and is in talks with native companies about doable 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 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 larger than firms similar 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 greatest agency, and different IHC-linked firms have performed a number one function in a string of Abu Dhabi IPOs as cornerstone traders.

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

“It will be more than $1 billion, but the size depends on how much we put in the market. I don’t think we can go above 10%, otherwise we will pull all the liquidity from market and this will affect the other players,” Shueb mentioned.

Pure Health has performed a significant function within the UAE screening for COVID-19. Its merger with state-owned Abu Dhabi Health Services (SEHA), which Shueb mentioned has nearly 24,000 staff, 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 Health IPO, Shueb mentioned, including it’s contemplating a doable 2023 IPO of International Energy 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 could be equal to a sizeable proportion of IHC’s money place.

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

“We will have to create some debt on our balance sheet as well so that we can continue 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 companies in April.

It could announce as much as two worldwide acquisitions and purchase a UAE-listed hospitality agency earlier than the tip 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 purchase a stake in Colombian meals producer Nutresa failed because it couldn’t safe the stake dimension it needed. Shueb mentioned IHC would proceed to search for alternatives in different Latin American nations.

($1 = 3.6729 UAE dirham)

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

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