IHC, hungry for deals, plans IPOs in healthcare and IT

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ABU DHABI – International Holding Company plans to sell 20% of its technology unit in an initial public offering next year, its CEO told Reuters, adding that the UAE’s IHC is targeting an IPO of Pure Health in the first quarter to raise over $1 billion.

IHC, which has risen from relative obscurity to become the largest publicly traded company in the UAE worth over $200 billion, has embarked on a consolidation and acquisition campaign.

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This led to two IHC subsidiaries complementing the three largest companies on the Abu Dhabi Securities Exchange (ADX).

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Asked about plans for International Technology Holding (ITH), chief executive Syed Basar Shueb said IHC would likely list 20% in the third quarter and is in talks with local companies about possible acquisitions by the spin-off group. IHC’s holdings in the IT sector.

ITH is expected to generate more than half a billion dirhams ($136 million) and have $1 billion in assets by the second quarter, Shueb said.

IHC is part of a business empire overseen by its chairman, Sheikh Tahnoon bin Zayed al-Nahyan, who is also the UAE’s national security adviser and was a foreign policy troubleshooter for his brother, President Sheikh Mohammed. bin Zayed al-Nahyan.

The company, whose market value exceeds that of companies such as Shell, Disney and Nike, has been instrumental in increasing the size of ADX amid intensifying competition with the Saudi Arabia.

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IHC, its subsidiary Alpha Dhabi, ADX’s second-largest company, and other IHC-related companies have played prominent roles in a series of Abu Dhabi IPOs as lead investors .

Pure Health, under Alpha Dhabi, is aiming to raise more than $1 billion in a delayed first quarter IPO of this year.

“It will be over $1 billion, but the size depends on what we bring to market. I don’t think we can exceed 10%, otherwise we will take all the liquidity out of the market and it will affect other players,” Shueb said.

Pure Health has played a major role in testing for COVID-19 in the UAE. Its merger with state-owned Abu Dhabi Health Services (SEHA), which Shueb says has nearly 24,000 employees, is taking longer than expected, delaying the IPO.

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IHC, which has completed four IPOs this year and expects a similar number in 2023, has yet to name any banks for Pure Health’s IPO, Shueb said, adding that it is considering a possible IPO in scholarship in 2023 from International Energy Holding.

ACQUISITIONS

IHC, whose interests range from real estate to agriculture, said the total value of its acquisition in the third quarter exceeded 13.5 billion UAE dirhams and it expects 70% more to come. world over the next year.

Shueb said it was in talks with international banks for long-term financing for planned purchases in 2023, adding that it would equate to a significant proportion of IHC’s cash.

Some IHC companies may eventually issue their own bonds, Shueb said, without giving further details.

« We will also have to create debt on our balance sheet so that we can continue to invest. »

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

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

« We are looking at Colombia and Asia – mainly Indonesia and India – these are the two main markets where we operate. »

This month, IHC’s bid to buy Colombian food producer Nutresa failed because it was unable to secure the size stake it wanted. Shueb said IHC will continue to seek opportunities in other Latin American countries. ($1 = 3.6729 UAE dirhams) (Reporting by Yousef Saba and Rachna Uppal; Editing by Alexander Smith)