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Five Holdings taps banks for IPO next year: Dubai-based hospitality group Five Holdings has reportedly tapped Citi and Deutsche Bank to work on its planned initial public offering on the DFM next year, Reuters reports, citing people with knowledge of the matter. The exact timing and size of the IPO were not disclosed.
We knew this was coming: Five Chairman Kabir Mulchandani told Reuters earlier in April that the company was planning to list in Dubai, and mulling a potential dual listing. Mulchandani did not elaborate on a specific exchange for the second listing.
About Five: Five operates luxury hotels in Dubai, Ibiza, and Switzerland — including one of Dubai’s biggest party hotels — and is valued between USD 2.5-3 bn. The group has doubled down on expanding its Spanish footprint as of late, acquiring Spanish company Chioro for AED 210.26 mn (EUR 52.75 mn) in February and Spanish hospitality company Pacha Group for AED 1.21 bn (EUR 303 mn) in October, which was funded through a green bond issuance and revolving credit facility.
ICYMI- The company recorded a bottom line of AED 309 mn on a pro forma basis after acquiring Universo Pacha in 1Q 2024. In 2023, the company’s net income increased 35% y-o-y to AED 314 mn.
REMEMBER- The DFM is seeing a lot of IPO activity this year: Last week, construction firm Alec tapped advisors for an IPO on the DFM. Amanat Holdings is also reportedly looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year, while shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. The Dubai bourse has already seen two successful IPOs this year, including Parkin, which raised AED 1.57 bn, and Spinneys, which raised AED 1.38 bn.
