Abu Dhabi’s Q Holding to rebrand as Modon Holding after $12bn merger

Abu Dhabi’s Q Holding will be rebranded as Modon Holding, subject to shareholders’ approval, following its $12bn merger with ADQ and IHC Capital Holding’s real estate assets.

Abu Dhabi wealth fund ADQ and IHC Capital combine their shareholdings in Modon Properties as well as ADQ’s stake in Abu Dhabi National Exhibitions Company (ADNEC) into Q Holding as part of the deal.

“Q Holding acquired control over 100 per cent of the share capital for ADNEC, Modon Properties, and Miza Investments, among other real estate assets,” the Abu Dhabi real estate firm said in a bourse filing.

Q Holding will be issuing a total of 25.6 billion convertible bonds with a nominal value of Dhs1 each to both ADQ, which will receive 17.1 billion bonds, and IHC, which will receive 8,539,230,000 bonds, as part of the transaction.

The company said the allocation of bonds to the two companies will translate into 6.3 billion and 3.2 billion new shares in the share capital of the merged entity, respectively.

“Following the deal, we will continue to prioritise the advancement of Abu Dhabi’s real estate economy, while setting new standards in the field of strategic investment that align with the nation’s comprehensive development plans,” said Jassem Al Zaabi, chairman of Q Holding.

Al Zaabi said there will be a significant expansion in Modon Holding’s global portfolio, which will further increase its real estate development ambitions.

The real estate behemoth’s share capital is increased to Dhs16.3bn through the issuance of 9.49 billion new shares to the two entities at a price of Dhs2.70 per share.

Rebranding Q Holding as Modon Holding

Last August, Abu Dhabi consolidated its key real estate assets under one entity, creating one of the largest real estate, hospitality, events, and catering platforms in the Middle East region.

ADQ and IHC Capital will own a respective 38.7 per cent and 19.4 per cent of the entire issued share capital of the merged entity.

With a market capitalisation of Dhs49.4bn as of February 28, 2024, Q Holding reported a 38 per cent increase in full-year revenue to Dhs994m compared to Dhs720m a year earlier. However, its profit plunged to Dhs574m from Dhs823m a year ago.

The group’s assets surged to Dhs21.3bn at the end of 2023 from Dhs19.5bn at the beginning of the year.

Earlier in January, the company announced a slew of new appointments to its C-suite, including a new chairman, as well as the firm’s managing director and group CEO. Jassem Mohammed Buatabh Al Zaabi was appointed company’s chairman, Abdullah Al Sahi is the new group managing director and Bill O’Regan is the group CEO of the Abu Dhabi real estate giant.

Read: IHC’s Q Holding revamps top leadership with new group CEO