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Dubai Investments plans IPOs of units

Issac John Associate Business Editor
Filed on March 18, 2015

Dubai Investments is targeting new acquisitions and joint ventures to benefit from massive growth potential.

Dubai — Dubai Investments, a diversified conglomerate with more than 35 subsidiaries, plans to float shares of  its  group companies from 2016, chief executive Khalid bin Kalban said on Monday.

He said the group planned to go public with the businesses in financial services, district cooling and real estate from next year onwards if sentiments are positive. “In an ideal scenario, we could have at least one IPO each year for the next few years,” said Bin Kalban.

The company, marking its 20th anniversary this year, also announced plans to further diversify its business with foray into new sectors and newer markets across the globe as part of its aggressive expansion strategy in the near future.

He unveiled the group’s plans to invest in a wide array of new sectors, including asset management, education, healthcare and energy sectors, besides reinforcing its leadership and innovation in real estate, financial investments and manufacturing domains as part of its strategic growth plans.

He said Dubai Investments is targeting new acquisitions and joint ventures to benefit from massive growth potential. “Integral to these plans is a drive to spread the geographical presence of our operations in newer markets across the region and beyond.”

Bin Kalban said the company expects to acquire a property firm in Abu Dhabi within days and close the Al Mal Capital acquisition deal. “This will be the year of acquisitions to bring in businesses that are complementary to our three main lines — real estate, manufacturing and financial services,” he said.

“Al Mal’s expertise will enable us to identify possible new acquisitions and even advise exits from existing businesses in our portfolio,” said Bin Kalban.

“Dubai Investments has built strong credentials over the last two decades, underpinned by proven partnerships, smart acquisitions, profitable exits and a robust commitment to value creation. Dubai Investments will continue its build its expertise across both established and new sectors as part of its transition into the next phase of growth trajectory,” he said.

In the last 20 years, Dubai Investments has helped create 15,000 job opportunities, invested in and created over 70 companies and subsidiaries, including exits over the years, engaged 25,000-plus shareholders, built total assets to over Dh14.52 billion and net worth surged to over Dh10.1 billion, said Bin Kalban.

“Along this journey, Dubai Investments has paid over Dh4 billion in dividends and bonus shares, thus creating immense value across the entire stakeholder value chain,” he said.

Bin Kalban said Dubai Investments would continue its strong thrust in developing its real estate portfolio and allied businesses over the next two to three years to take advantage of renewed market interest and surging investor confidence.

“The real estate industry has always been a key driving force for UAE’s economy and the unprecedented demand in the sector benefited DI immensely, given its wide presence across the entire spectrum of the industry. Dubai Investments is confident that the current demand in the sector will continue in the foreseeable future and it is geared to cater to the required capacity,” said Bin Kalban.

Dubai Investments announced a net profit of Dh1.343 billion for 2014, a 63 per cent increase compared to a Dh822.32 million net profit in 2013, as per its audited, consolidated financial statement issued last week.

The net operating profit for 2014 was Dh1.76 billion, an increase of 42 per cent compared to Dh1.27 billion achieved in the previous year. Total assets as on December 31, 2014 surged to Dh14.52 billion as against Dh12.62 billion in 2013.

— issacjohn@khaleejtimes.com


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