IHC Unit Gets $13.1 Billion of Bids in Direct Listing

(Bloomberg) -- Multiply Group, a subsidiary of Abu Dhabi’s International Holding Company, attracted 48 billion dirhams ($13.1 billion) of bids for its direct share listing, raising 3.1 billion dirhams.

Shares in the tech-focused holding company surged following the listing, closing at 2 dirhams apiece Sunday, 80% higher than the launch price of 1.11 dirhams. 

“We have major local investors,” IHC’s Chief Executive Officer Syed Basar Shueb said in a telephone interview. “It was good for our shareholders, it’s good for the local investors” and the company now has more cash to acquire businesses, he said.

The offering marks the latest stage in a drive by IHC, among the most valuable firms in the Middle East, to expand its clout on local exchanges. The firm is now working on listing its healthcare group, including Pure Health, a company that has partnered with the United Arab Emirates government to launch a Covid-19 screening initiative covering the nation’s airports.

“These are there for next year,” Shueb said.

UAE nationals own more than 92% of IHC, while foreigners hold about 7.6%, according to Abu Dhabi exchange data. The firm’s second-biggest shareholder is Royal Group, a company led by Sheikh Tahnoon Bin Zayed Al Nahyan, the country’s national security adviser and brother to Abu Dhabi’s crown prince.

The biggest individual shareholder, Pal Group of Companies LLC, is a subsidiary of Royal Group. Together, they own more than 70% of IHC.

IHC is also scouring for investment opportunities in Central America, some African countries and in Europe, Shueb said.

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