Dubai: Is DFM-listed investment firm Amanat having a change of mind on its follow up IPO plans?
According to a Reuters report, Amanat could be seeking a stock market float of its education-linked assets in Saudi Arabia. What’s surprising is that all through last year, Amanat has been talking up the prospects of its healthcare operations going public
On DFM, the holding company has a market cap of $750 million. Amanat looks to raise around $300 million from diluting 30% in Education Hold Co.. (This would actually translate into a higher value for the education subsidiary than the parent company.)
Amanat Education currently lists the Middlesex University campus in Dubai, the Saudi-based HDC, which is the largest special needs provider in Saudi Arabia, and Nema Holdings, a higher education university in Abu Dhabi.
Fact is Amanat had initially considered a standalone IPO for its education business first before changing tack to healthcare in 2023. Now, the decision seems to have been settled on education.
There are plans to expand its education assets in Saudi Arabia and UAE. “The IPO can help bring in funds that could be used for a major stake purchase,” said an analyst. “The Saudi education sector, especially in higher education, can easily accommodate more.
“That could also explain why an Amanat Education IPO could be earmarked for a Saudi Tadawul listing.”
Buy existing campuses?
If the Saudi IPO goes ahead, Amanat Education would prefer to buy existing campuses rather than greenfield ventures, analysts add. This would shorten payback times compared to the long gestation periods involved in building an educational asset from scratch.
Analysts say that it's also unlikely Amanat Edu would consider K-12 school operators, at least initially. "In a market like Saudi Arabia, what could be of immediate priority is higher education needs, especially with an international affiliation," said an analyst. "Amanat already has seen the benefits from the Middlesex University Dubai association."
