Abu Dhabi wealth fund ADQ to merge life sciences assets ahead of IPO

Abu Dhabi sovereign wealth fund ADQ is consolidating its pharmaceutical assets to create what would be one of the region’s largest life sciences firms ahead of a potential initial public offering, according to people familiar with the matter.

The fund will merge Egypt’s Amoun Pharmaceutical Co., Switzerland’s Acino, UAE’s Pharmax Pharmaceuticals, and Turkey’s Birgi Mefar Group, which it recently acquired, the people said, asking not to be identified because the discussions are private.

ADQ plans to list the new entity in the next 12 to 18 months and is considering more strategic investments — both locally and internationally — ahead of the potential offering, some of the people said. A representative for ADQ declined to comment.

ADQ, which is headed by Sheikh Tahnoon Bin Zayed Al Nahyan, the country’s national security adviser and brother to Abu Dhabi’s crown prince, last year consolidated several companies into Pure Health to create the largest health-care provider in the UAE. In August, Pure Health signed an agreement to buy one of the UK’s largest independent hospital operators from Centene Corp. for an enterprise value of about $1.2 billion.

The conglomerate, which owns some of Abu Dhabi’s key assets, has in recent years emerged as one of the emirate’s most active entities. With an estimated $157 billion in assets, ADQ is now Abu Dhabi’s third-largest sovereign wealth fund behind the Abu Dhabi Investment Authority and Mubadala Investment Co., according to data provider Global SWF.

The fund has been on an investment spree in sectors, which are considered to be strategic for Abu Dhabi as it seeks to fast-track efforts to diversify its oil-dependent economy.

Over the past two years, the Gulf has seen a listings boom as governments in the UAE and in Saudi Arabia sell assets to expand their capital markets and attract new investors.