United Global plans to list in London SE by 2016-end

United Global, the holding company of UAE Exchange and Travelex brands, has firmed up plans for a global IPO by the end of 2016.

BR Shetty, Chairman, UAE Exchange, said here on Tuesday that the IPO is likely to be listed on the London Stock Exchange. It would aim at expanding both the brands in order to strengthen its position in the world’s currency exchange services market. However, he refused to divulge the size of the IPO, saying “it is too early” to say anything in this regard.

Last year, UAE Exchange had acquired foreign currency exchange firm Travelex as part of expanding its business to several countries. Currently, the company has 780 branches in 32 countries and accounts for 12 per cent of the inward remittances to India out of the total $70 billion.

Growth in remittance

According to Shetty, the brands of the companies will be kept separate in order to leverage their respective strengths, even after merger.

Y Sudhir Kumar Shetty, President, UAE Exchange, pointed out that sliding oil prices have not dented the remittances business and the company is foreseeing a significant growth in remittances in 2016. The impact of falling crude prices, especially in UAE and Abu Dhabi, was low, as 90 per cent of the revenues of these countries come from non-oil sources.

Of the $70 billion remittances to India, he said, 50 per cent comes from the Gulf countries. However, the company is expecting growth in business in the coming year, thanks to rupee depreciation and the recent change in customer profile. Given the growth, he said, Kerala would stand to benefit from expatriate income in 2016, as the state had received Rs.90,000 crore in remittances.