Although the Gulf equity markets are correcting themselves in spectacular style, local companies are not being deterred from planning for IPOs. Emirates Holdings, one of the UAE’s biggest private sector groups, is spinning off two of its subsidiaries into a separate independent vehicle in preparation for their eventual IPO, says the firm’s chairman. They will be the first of Emirates Holdings’ subsidiaries to be spun off.
The two subsidiaries – an engineering and construction company and a foods distributor – will use the vehicles to make acquisitions to reach a sufficient size before tapping the local stock markets within the next two years.
The spin-offs will help introduce formal corporate governance procedures to the two companies.
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