Alpha Dhabi Holding, a subsidiary of Abu Dhabi-based investment firm IHC, plans to sell shares through an initial public offering and list on the Abu Dhabi Securities Exchange on June 27.
The offering will comprise of a sale of existing shares to individuals and other investors in the UAE and to qualified institutional investors, the company said in a statement on Thursday.
“As a public company we will have a stronger capital structure to invest in additional verticals, expand commercially and accelerate growth both organically and through acquisitions,” Mohamed Al Rumaithi, chairman of Alpha Dhabi Holding, said.
Set up in 2013, Alpha Dhabi has investments in different sectors including industries, healthcare, construction and hospitality. Its investment portfolio, local and international, includes 25 subsidiaries and 40,000 employees.
In March, the company bought a 12.21 per cent stake in Aldar Properties from Mubadala Investment Company for Dh3.5 billion ($953 million). It also acquired assets worth Dh2.5bn from privately held Murban Energy earlier this month. The assets include hotels and resorts such as St Regis at Saadiyat Island, Cheval Blanc Randheli in the Maldives and Etihad International Hospitality, a facility management company.
Alpha Dhabi’s “business is growing fast, highlighted by the 30 per cent jump in first quarter revenue and gaining a listing on a major stock exchange will enhance its already strong platform and reputation”, Syed Shueb, chief executive and managing director of IHC, said.
The company has Dh10bn in paid-up capital, according to the statement.
Alpha Dhabi's parent company IHC reported a 1,233 per cent increase in net profit for the first quarter of 2021 as revenue surged on the back of recent acquisitions.
Net profit for the three months to March 31 increased to Dh1.5bn from Dh112m in the same period last year as revenue trebled to Dh2.28bn, the company said in May.
IHC's industrials vertical owns stakes in a number of businesses, including Quantlase Imaging Lab, the company behind the rapid Covid-19 screening system operated on the border between Abu Dhabi and Dubai at Ghantoot. It also owns Tamouh Healthcare, Pure Health and asset management company Eltizam Group.
Earlier this year, IHC said it will list three of its subsidiaries on the secondary market of the ADX.
Abu Dhabi's stock market has been registering a rise in listings.
Al Yah Satellite Communications, or Yahsat, the satellite operator owned by Mubadala Investment Company, also plans to sell at least 30 per cent of its shares and list on the ADX in the third quarter of this year, subject to market conditions and relevant regulatory approvals.
Mubadala will remain the major shareholder after the listing.