Amanat Holdings (“Amanat”), a public joint stock company under formation with a proposed capital of AED 2.5 billion, today announced plans to launch its Initial Public Offering (IPO) on the Dubai Financial Market (DFM) creating what will be the largest integrated healthcare and education company in the GCC. The subscription period of the IPO is anticipated to open in the second half of October 2014.
Amanat, founded by a group of 37 prominent local and international investors, plans to raise AED 1.375 billion at an offer price of AED 1.00 per share plus offering costs (AED 0.02 per Offer Share), representing 55 per cent of total share capital, through a primary listing on the DFM. Collection of founders’ subscriptions for 1.125 billion shares at a price of AED 1.00 per share plus offering costs, representing 45 per cent of total share capital, has been completed.
The ownership stakes of the five largest shareholders are as follows: Rimco Investments LLC (10.00%); Osool Asset Management BSC Closed (10.00%); United Alsaqer Group LLC (5.00%); Astro AD Cayman Ltd. (5.00%); and Capital Investment – LLC (4.00%).
Amanat will use its total capitalisation of AED 2.5 billion to establish and incorporate companies working in the healthcare and education sectors, and develop, manage and operate these companies within the GCC. As per the company’s business plan, Amanat will deploy 95 per cent of its capital on acquisitions and partnership with existing or under development companies, and use 5 per cent of capital to establish new ventures.
Healthcare spending in the Gulf is expected to grow at a compound annual growth rate (CAGR) of 10.7 per cent until 2017, while K-12 and higher education student enrolment figures are predicted to expand at a CAGR of 5.2 per cent until 2020.
Faisal Bin Juma Belhoul, Chairman of the Board of Amanat, said: “We have reached a pivotal moment for healthcare and education in the GCC, with a clear need for a company with the resources and expertise necessary to bridge the quality and supply gap presently facing the sectors. Amanat fulfils this need and will leverage its unique scale and extensive networks to partner with governments, companies and entrepreneurs to positively transform healthcare and education services for generations to come.”
The company’s value creation model is based on three main platforms. First, Amanat will transform established growth companies through the implementation of value creation initiatives and funding support (approximately 70 per cent of deployed capital). Second, it will develop and fund infrastructure projects related primarily to the expansion needs of these companies (approximately 25 per cent of deployed capital). Third, it will create new companies built on proven business models, bringing specialist know-how into the region through partnerships with leading international providers to address supply or quality gaps (approximately 5 per cent of deployed capital).
Khaldoun Haj Hasan, Chief Executive Officer of Amanat, said: “We will work alongside governments to improve the provision of healthcare and education services in the region. Moreover, Amanat will be a source of both capital and expertise to GCC healthcare and education companies seeking to realise their full potential, and to investors searching for efficient exposure to these high growth sectors.”
Ranjit Bhonsle, Chief Operating Officer of Amanat, added: “The expertise of the Amanat management team is central to the company’s operating model of playing the role of a substantial and active investor, is essential to achieving both a financial and social return for companies and projects in which Amanat will become involved. 95 per cent of capital will be deployed on acquisitions and partnership with existing or under development companies.”
The subscription period for the Amanat IPO is anticipated to open in the second half of October 2014.
For information about Amanat, please visit www.amanat.ae