Abu Dhabi-based investment firm KBBO Group is seeking to raise about $1.2 billion through the sale of shares in its Centurion Investment and Infinite Investment LLC units, according to a person familiar with the matter.
KBBO, with interests in real estate, energy and health care, plans to merge the two companies and offer a 40 percent stake in a primary and secondary sale next year, the person said, asking not to be identified as the matter is private. The merged entity may be valued at about $3 billion, they said.
The initial public offering is planned for the second or third quarter of 2016 on the New York Stock Exchange, the person said. KBBO is expected to hire banks to manage the sale soon, with KBBO and Guggenheim Partners LLC acting as financial advisers for the process, according to the person.
KBBO is one of a number of companies in the Middle East expected to sell shares later this year or next amid the stabilization of oil prices and regional stock markets. Companies in the region sold stakes in 11 IPOs in the first half of 2015, raising more than $2.4 billion, according to Ernst & Young. The number of deals fell by 11 percent from a year earlier, with the value raised dropping by 1 percent.
KBBO’s Centurion and Indian-born entrepreneur Bavaguthu Raghuram Shetty bought a majority stake in retail currency exchange Travelex Holdings Ltd. in 2014 from Apax Partners LLP.