By Hadeel Al Sayegh and Federico Maccioni DUBAI (Reuters) -Dubai party hotel operator FIVE Holdings is considering listing in London or New York, three people with knowledge of the matter said. The company, which owns the Pacha hotel and nightclub, has been exploring an initial public offering in Dubai, it has said. Chairman and founder […]
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Dubai party hotel FIVE considers listing in London or New York
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By Hadeel Al Sayegh and Federico Maccioni
DUBAI (Reuters) -Dubai party hotel operator FIVE Holdings is considering listing in London or New York, three people with knowledge of the matter said.
The company, which owns the Pacha hotel and nightclub, has been exploring an initial public offering in Dubai, it has said.
Chairman and founder Kabir Mulchandani said last year the company was worth up to $3 billion and was considering a dual listing. He did not name possible locations.
London could be a strong candidate given a majority of clients at FIVE’s Ibiza clubs are British nationals and that business generates significant revenues for the group, one of the people said. An offering would be a boost for London, which has struggled to attract IPOs.
FIVE did not respond to requests for comment.
Dubai is the biggest tourism and trade hub in the Middle East, attracting a record 18.7 million international overnight visitors last year.
Foreign investors accounted for 50% of the total trading value on the Dubai Financial Market exchange last year, exchange data showed.
The company and its advisers are planning to start the listing process by the end of the year, two of the people said. The three people spoke on condition of anonymity because they were not authorised to speak publicly.
FIVE operates luxury hotels in Ibiza and Switzerland as well as owning one of Dubai’s biggest party hotels, where guests can park their top-of-the-range sports cars inside a nightclub for Dhs10,000 ($2,723). Guests can also rent its 16-passenger private jet for $14,000 an hour.
This year’s market volatility, triggered by U.S. President Donald Trump’s policies, has weighed on global IPO activity, but the Gulf region has bucked the trend as both Saudi Arabia and the UAE have forged ahead with listing plans.
They include Saudi budget airline flynas, which is seeking to raise over $1 billion, and Dubai Holding’s residential REIT, whose shares rose almost 15% during its debut on Wednesday.
(Reporting by Hadeel Al Sayegh, Federico Maccioni in Dubai. Additonal reporting Charlie Conchie in London. Editing Anousha Sakoui and Barbara Lewis)