Al Qudra to sell 30% of firm in IPO this year

SHARE SALE: Al Qudra plans to sell 30% of the company in an IPO before the end of the year.

Al Qudra Holding is to sell up to 30% of the company in an initial public offering (IPO) before the end of the year after shelving what would have been the UAE's second-largest IPO in March.

The Abu Dhabi-based conglomerate, which has 30 units in industries including real estate and infrastructure, said on February 19 it planned to offer 55% of the company, looking to raise 3.7 billion dirhams ($1.01 billion).

RELATED: Al Qudra plans UAE's second largest IPO

However less than two weeks later the company announced it was delaying the share sale, stating that it wanted to wait until the new companies' law came into affect, allowing firms to offer less than 55% through an IPO.

RELATED: Al Qudra shelves initial public offering

Al Qudra CEO Mahmood Ebraheem Al Mahmood said in comments published on Monday that preparations to relaunch its IPO would begin as soon as the new companies' law is revised "within a few months".

“The government has indicated that the change will come within a few months,” Al Mahmood told UAE daily The National.

In preparation for the upcoming IPO, Al Quadra last week announced a corporate governance shake-up, with Al Mahmood taking over day-to-day running of the company and Chairman Salah Salem bin Omeir Al Shamsi stepping back to focus on the firm's broad strategy.

RELATED: Al Qudra in corporate governance shake-up

Al Quadra said at the time UAE corporate governance regulations call for a separation of the roles of chairman and chief executive in publicly traded companies.

Al Mahmood, appointed as CEO in March, described the change as "a better set-up".

"Change is part of life," he told The National.

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