FIVE Holdings will create up to 50 new staff millionaires following its IPO in 2025, the group’s founder Kabir Mulchandani has revealed.
In an interview published in Arabian Business, Mulchandani said the group was heading for $2bn public listing in 2025, with $200m of his own shares – around 10% of the company – allocated to staff.
“We don’t really need to do an IPO for money or growth. We are generating a significant amount of cash. The real reason is the employee stock option programme. I have moved $200m worth of my shares to be given to the employees…I think this will give them a sense of ownership,” he said.
It is understood that the shares will be allocated across all staff levels and departments.
The group currently operates 1500 hotel rooms between FIVE Palm Jumeirah, FIVE Jumeirah Village, FIVE ZURICH and FIVE LUXE (soon to be opened). It has also taken a $320m stake in the legendary nightlife company Pacha Group – one of Spain’s largest hotel and night club firms.
Latest figures published on its corporate website show profits of $51m in the first six months of this year, a 43% rise on the same period last year. It has EBITA margins of 41% and in early October the company listed a $350m green bond on Dubai’s Nasdaq.
Mulchandani said: “What we’ve been able to do exceptionally well is entertainment hospitality. This is a Disneyworld for adults. Alongside that fundamental journey, we’ve also built a highly sustainable product,”
READ THE FULL INTERVIEW HERE
The sound of money: how Kabir Mulchandani created a $2bn empire
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