Al Habtoor Group, the Dubai-based conglomerate, has called off plans for an initial public offering next year that could have raised up to US$1.6 billion (Dh5.88bn).
The family owned company, which has interests in hotels, property and car dealerships across the country and internationally, had been considering an IPO on the Nasdaq Dubai market, and a foreign stock exchange, next March or September.
But Khalaf Ahmad Al Habtoor, the chairman, said: "After a thorough evaluation I have decided to postpone the IPO. It is a moral issue not taking the group public at this time. I will continue to focus on best practice and growing the company in a sustainable way."
A statement from the group said that an independent valuation of the Al Habtoor business, prepared by the accounting firm Grant Thornton, showed a value of $6.06bn, excluding several foreign interests, substantially higher than previously estimated.
Al Habtoor also said that earnings in the current year are expected to grow 16 per cent to $192 million. It has never previously disclosed earnings.
The postponement will come as a big disappointment to the UAE financial community, which had seen a possible stock market flotation as the sign of a revival of IPO activity in the Emirates, which has seen almost no new listings since 2008.
Last week, Al Ghurair Investment, another prominent family owned group, ruled out any early rush to stock markets for its businesses.
Several leading international banks were in the running for high-earning advisory work on the IPO.
One bank executive said: "This is bad news. Some have already done a lot of work for a flotation, and were in the process of putting big teams in place to handle it."
An unidentified senior banker told Reuters: "There was a sharp discrepancy between what the group was expecting in terms of price and the reality of the underlying market here. It was a wise move to back off if you are not really sure it can be pulled off."
A group statement said: "Mr Al Habtoor added that the IPO funds would be an added responsibility to him personally, while the group ascertains where the best investment opportunities are. The large scale investments under way right now are within the group's expertise. They offer something promising to the group and the UAE."
In the past year, Al Habtoor has announced investments worth Dh5.9bn in the hospitality sector, including Dubai's "first ever integrated resort comprising of three hotels in one complex as well as a Las Vegas-style theatre".
The automotive business, which owns the rights to marks like Mitsubishi, Bugatti and Bentley in the UAE, has also invested in its dealerships and repair garages in the GCC, and is about to sign a distribution contract "with a major European tyre maker", the group said.
Mr Al Habtoor added: "I have made this decision to postpone the IPO and would like to thank the people who have advised us along the way." He gave special thanks to named executives from the Dubai and UAE financial authorities, and to Grant Thornton and other "leading financial institutions".
fkane@thenational.ae
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The more serious side of specialty coffee
While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.
The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.
Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”
One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.
Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms.
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
FIGHT CARD
Welterweight Mostafa Radi (PAL) v Tohir Zhuraev (TJK)
Catchweight 75kg Leandro Martins (BRA) v Anas Siraj Mounir (MAR)
Flyweight Corinne Laframboise (CAN) v Manon Fiorot (FRA)
Featherweight Ahmed Al Darmaki (UAE) v Bogdan Kirilenko (UZB)
Lightweight Izzedine Al Derabani (JOR) v Atabek Abdimitalipov (KYG)
Featherweight Yousef Al Housani (UAE) v Mohamed Arsharq Ali (SLA)
Catchweight 69kg Jung Han-gook (KOR) v Elias Boudegzdame (ALG)
Catchweight 71kg Usman Nurmagomedov (RUS) v Jerry Kvarnstrom (FIN)
Featherweight title Lee Do-gyeom (KOR) v Alexandru Chitoran (ROU)
Lightweight title Bruno Machado (BRA) v Mike Santiago (USA)
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
'Morbius'
Director: Daniel Espinosa
Stars: Jared Leto, Matt Smith, Adria Arjona
Rating: 2/5
How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
