Abu Dhabi’s Multiply Group is headed for an ADX listing, and it sure has prospects
Multiply has picked up stakes in high growth businesses worldwide
The Multiply Group, a subsidiary of International Holding Corporation (IHC) - the most valued company in the UAE - will list on Abu Dhabi Securities Exchange (ADX) on December 5, making it IHC’s seventh subsidiary to do so in less than a year. While the firm did not reveal the specifics of its stock offering, it did state in October that 30 per cent of Multiply’s shares will be sold, valuing the company at Dh8 billion to Dh10 billion.
Multiply itself is a holding company with international operations in five industries - automobiles, utilities, capital, wellness, and communications. The portfolio maintains a mix between stable businesses that provide recurring revenue and high-growth enterprises. Technology is growing at an exponential rate, allowing UAE investors to participate in the disruptive technology space’s accelerated expansion.
The Multiply Group reported revenues of Dh170.6 million and net profit of Dh123.7 million for year-to-September, significantly higher than previous periods due to the significant expansion plans. It had assets of Dh8.2 billion at the end of September and completed its first worldwide acquisition in second-half of 2020, purchasing a minority position in Yieldmo, a Google Ventures-backed martech company that is one of the fastest-growing in North America. Today, the Group consolidates consistent cashflow from investments in Emirates Driving Company and PAL Cooling Holding, while it continues to diversify across high-return businesses.
Quite an investment appetite
Balancing a thorough awareness of local culture with a global attitude has been a major aspect of the success. Multiply has bold appetite for high-growth sector expansion, as well as a desire to aggressively acquire holdings in some of the world’s leading and fastest-growing businesses. The firm has a rigorous selection criterion in place, seeking tech-driven, financially sound transactions with significant growth potential to add to its product range in order to build a worldwide brand.
IHC listed six firms on the ADX in 2020 and 2021, resulting in a 90 percent average share price appreciation since the first offering. Building on that momentum and Multiply’s excellent position, a listing on the ADX appears to be the next reasonable step in providing additional liquidity to shareholders and elevating the company’s profile.