IHC planning an IPO in the IT sphere
2022.11.24 11:19
IHC planning an IPO in the IT sphere
Budrigannews.com – According to a statement made by the CEO of International Holding Company to Budrigannews, the company intends to raise more than $1 billion through an initial public offering of Pure Health in the first quarter of next year by selling 20 percent of its technology unit.
IHC has been on a spree of mergers and acquisitions since it emerged from relative obscurity to become the largest publicly traded company in the United Arab Emirates, worth more than $200 billion.
As a result, two IHC subsidiaries now complete the list of the three largest businesses listed on the Abu Dhabi Securities Exchange (ADX).
When asked about International Technology Holding (ITH)’s plans, CEO Syed Basar Shueb said that IHC will probably list 20% of it in the third quarter. He also said that IHC is talking to local businesses about what the group that came from IHC’s IT sector holdings might buy.
According to Shueb, ITH was anticipated to have $1 billion in assets and a turnover of 136 million dirhams by the second quarter.
Sheikh Tahnoon bin Zayed al-Nahyan is the chair of IHC. He is also the UAE’s national security adviser and has been a problem solver for his brother, President Sheikh Mohammed bin Zayed al-Nahyan, when it comes to foreign policy.
The company, whose market value is greater than that of Shell (LON:)Nike and Disney (NASDAQ:),has been crucial in expanding ADX’s size in the face of growing competition from Saudi Arabia.
IHC, its subsidiary Alpha Dhabi, the second-largest company on the ADX, and other companies linked to IHC have been key investors in a number of Abu Dhabi initial public offerings (IPOs).
Alpha Dhabi’s Pure Health intends to postpone its IPO for the first quarter of this year in order to raise more than $1 billion.
“The size depends on how much we put on the market, but it will be greater than $1 billion.I don’t figure we can go above 10%, if not we will pull all the liquidity from market and this will influence different players,” Shueb said.
Pure Health has been a major contributor to the UAE’s COVID-19 screening.Its consolidation with state-possessed Abu Dhabi Wellbeing Administrations (SEHA), which Shueb said has just about 24,000 representatives, is taking surprisingly lengthy, postponing the Initial public offering.
Shueb stated that IHC has yet to appoint banks for the Pure Health IPO and is considering a possible 2023 IPO of International Energy Holding. IHC has completed four IPOs this year and plans to do a similar number in 2023.
ACQUISITIONS IHC, which has interests in everything from real estate to farming, said that the total value of its acquisitions in the third quarter exceeded 13.5 billion UAE dirhams. Over the next year, it plans to acquire 70% more businesses worldwide.
Shueb stated that it is in discussions with international financial institutions regarding long-term financing for anticipated 2023 purchases, adding that this would amount to a significant portion of IHC’s cash position.
Shueb said, without providing any additional information, that some IHC businesses might one day issue their own bonds.
“In order to continue investing, we will also need to add some debt to our balance sheet.”
After investing $2 billion in Adani Group companies in April, Shueb stated that IHC is looking at two potential investments in India each worth more than $2 billion.
Before the end of 2022, it may announce up to two international acquisitions and purchase a UAE-listed hospitality company.
“We are looking at Colombia and Asia, primarily Indonesia and India, which are the two major markets where we operate,” the company states.
IHC’s attempt this month to acquire a stake in Colombian food manufacturer Nutresa was unsuccessful due to its inability to obtain the desired stake size.IHC, according to Shueb, would keep looking for opportunities in other Latin American nations.
