UAE deal-hungry IHC plans health and IT business IPOs

  • Pure Health IPO on track to top $1 billion, CEO says
  • Aims for tech sector IPO with $1 billion in assets in Q3
  • Considering International Energy Holdings IPO next year
  • Planning to buy this year and next year, seeking a substantial loan

ABU DHABI, Nov 24 (Reuters) – International Holdings Co (IHC.AD) plans to sell a 20% stake in its technology unit in an initial public offering next year, the chief executive of International Holdings Co (IHC.AD) told Reuters, adding that the UAE’s IHC is 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’s going to be over $1 billion, but the size depends on how much we put into the market. I don’t think we can go above 10% or we’re going to pull all the liquidity from the market and that 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 to do 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 for International Energy Holding. conduct an initial public offering.


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.”

After investing $2 billion in Adani Group in April, IHC is considering two potential investments in India worth more than $2 billion each, Shueb said.

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’s bid to buy a stake in Colombian food producer Nutresa failed because it couldn’t get 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 Dirhams)

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

Our Standards: The Thomson Reuters Trust Principles.

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