UAE-based Amanat Holdings will look at investing in three to six businesses over the next 12 to 24 months in the GCC’s healthcare and education sector, the startup’s chairman Faisal bin Juma Belhoul said on Wednesday.
Amanat will open subscriptions for its Dhs1.375 billion ($374 million) initial share sale on Dubai Financial Market (DFM) on October 20, it said in a statement. The offer period for the shares priced at Dhs1 each will run until November 4.
Belhoul revealed that the company will look at opportunities primarily in the UAE and Saudi Arabia, the GCC’s two biggest markets, by the way of acquisitions or the purchase of a majority stake.
“We will be active, strategic partners,” said Belhoul, stressing that Amanat will be unlike private equity players that will typically look at exits at some point, or large operators that acquire and absorb smaller businesses.
According to Belhoul, 70 per cent of the initial capital will be deployed for making new acquisitions in existing large mature and profitable businesses.
Another 25 per cent would be used in the setting up of new social infrastructure and facilities for its operating assets, which will also offer Amanat stable, long-term yield from tenants.
The remaining five per cent would be used as innovation capital, where Amanat will look at international partnerships and joint ventures with businesses in other markets, partnering with them to tap GCC markets.
Belhoul also added that at some point, the firm would look at starting new ventures along with the acquisitions.
On sub sectors within education and healthcare that Amanat maybe keen on, Belhoul said that the firm will look across sub-sectors including K12 and vocational training in the former, and diagnostic centres and integrated hospitals in the latter amongst others.
“We, however, will not look at the tail of the market,” said Ranjit Bhonsle, CEO at Amanat.