Dubai: Health care and education start-up Amanat plans to start subscription to its Dh1.325 billion Initial Public Offering (IPO) from October 20 and list on November 29, amid tumbling equity markets.
“For investors, the Amanat IPO is the singular opportunity to give them access to the GCC health care and education access,” said Faisal Bin Juma Belhoul, chairman at Amanat. The subscription period will end on November 4, and it will get listed on the Dubai Financial Market on November 29.
The company plans to sell 55 per cent of shares in two tranches, out of which 95 per cent is on offer for public, and the remaining 5 per cent will be allocated to Emirates Investment Authority, subject to their nod.
“The investment proposal has been sent today and legally they have five day period to respond. It’s an option that they have,” Belhoul said.
Amanat will use its total capitalisation of Dh2.5 billion to establish and incorporate companies working in the health care and education sectors, and develop, manage and operate these companies within the GCC.
It plans to deploy 95 per cent of its capital on acquisitions and partnership with existing or under development companies, and use 5 per cent of capital to establish new ventures.
Timing:
“We have to take into account the global macro-environment, but the local markets have been very strong. Liquidity was extremely high for Emaar and Marka. There has been ample of interest from the investors and we feel that it cannot be any better,” Belhoul said.
The Dubai index has shed more than 9 per cent since the start of the week along with its global peers as concerns resurfaced over growth. Sliding crude oil prices also led to the decline.
Belhoul said the region should have one IPO per month to match the perception of investors in the local and global markets.
Marka’s IPO was the first after a hiatus of five years in Dubai, followed by Emaar Malls Group. British bank Aldermore cancelled its London IPO plans on Wednesday, joining a slew of European firms that pulled listing plans.
Acquisitions:
The company aims to acquire 3-6 companies in the next 12-24 months in the health care and education sector.
“We will be owning majority stake in different business … we will looking at companies that will offer us a stable yield,” said Belhoul.
Emirates NBD and National Bank of Abu Dhabi will be the lead managers to the IPO and Shuaa Capital will be the offer manager.
Health-care spending in the Gulf is expected to grow at an annual growth rate of 10.7 per cent until 2017, while higher education student enrolment figures are predicted to expand at a 5.2 per cent until 2020.
