The Abu Dhabi-based International Holding Company (IHC), a conglomerate with a diverse portfolio, is contemplating an initial public offering (IPO) for its newly formed subsidiary, 2PointZero. This potential listing, targeted for sometime next year, could inject billions into the regional stock market.
Syed Basar Shueb, IHC's CEO, revealed these plans in a recent interview with Bloomberg. 2PointZero, established with a war chest of $27 billion (AED 100 billion), will house a collection of IHC's assets. This move signifies IHC's strategic shift towards streamlining its operations and potentially unlocking greater value for its shareholders.
The newly formed entity boasts an impressive leadership team. Sheikh Zayed bin Hamdan bin Zayed Al Nahyan chairs 2PointZero, while Mariam bint Mohammed Saeed Hareb Almheiri, the UAE's former Minister of Environment and Climate Change, takes the helm as CEO. Their expertise positions 2PointZero for potential success, particularly in navigating the complexities of a public offering.
IHC's plan to list 2PointZero comes alongside its broader strategy of optimizing its portfolio through subsidiary IPOs. Another potential candidate for a stock market debut is the International Technology Holding (ITH). This entity will consolidate all of IHC's information technology holdings under one umbrella, creating a more focused and potentially attractive proposition for investors.
Similarly, IHC is considering an IPO for Sirius International Holding, a subsidiary dedicated to fostering advancements in green technology, digital transformation, and healthcare. By pursuing separate listings for these specialized holdings, IHC aims to capitalize on the specific investor interest within each sector.
The potential listings of 2PointZero, ITH, and Sirius International Holding could significantly enhance the liquidity and dynamism of the Abu Dhabi stock market. These offerings would introduce a wider range of investment opportunities, potentially attracting both domestic and international investors.
The burgeoning economic landscape of the UAE, coupled with IHC's established track record, could position these IPOs for strong performance. The success of these listings would not only benefit IHC and its shareholders but also contribute to the continued growth and diversification of the Abu Dhabi financial market.