Abu Dhabi royal-led firm Ethmar to list after capital raise

Ethmar International Holding is set to go public in Abu Dhabi after it raises as much as Dhs700m ($191m).

Ethmar International Holding, an investment vehicle with dozens of subsidiaries, plans to offer investors a 13 per cent to 15 per cent stake through a capital raise of Dhs600m to Dhs700m, according to an investor presentation seen by Bloomberg News. It will then list on the Abu Dhabi stock exchange on May 1.

The firm, which holds more than 25 subsidiaries spanning real estate, energy, technology, health care, sports and investments, is chaired by Sheikh Hamdan bin Mohammed bin Zayed Al Nahyan, whose father is the UAE President Sheikh Mohammed bin Zayed.

The company, which would be valued at more than Dhs4bn, is planning a range of acquisitions, according to the presentation. These include one of the top three financial services companies in the UAE, one of the largest tourism firms in Abu Dhabi, an engineering and construction company and one of the largest pharmacy chains in the capital.

A representative for EIH declined to comment.

Abu Dhabi is leading the Gulf’s initial public offerings boom in 2023, largely due to a $2.5bn listing by Adnoc Gas — the world’s biggest IPO so far this year. The region has continued to be a bright spot in what is otherwise a very subdued global IPO market, as concerns about inflation and weaker economic growth weigh on investors’ risk appetite.

Read: ADNOC Gas IPO raises $2.5bn, attracts $124bn in demand

A senior Abu Dhabi official said in March that at least eight companies are expected to list in the UAE capital this year. Last month, data analytics firm Presight AI Holding also listed in the city, raising $496m.

Read: Presight AI surges 176% in Abu Dhabi debut after $496m IPO

Ethmar International Holding has several partnerships with International Holding, another Abu Dhabi investment vehicle led by Sheikh Tahnoon bin Zayed Al Nahyan.

IHC shares have risen 28,000 per cent over the past five years, propelling the firm into the leagues of the world’s largest companies, though its size hasn’t enticed international investors.

IHC hasn’t been included in the global MSCI index and isn’t covered by any stock analysts tracked by Bloomberg.

EIH’s assets ballooned to Dhs78.1m last year from Dhs15.8m in 2021, according to the investor presentation. Its holdings include SKYGO, a drone company in partnership with IHC, boutique real estate company 9Yards, a number of gas and electricity firms with IHC, and a security firm.