Dubai – Mubasher: The Abraaj Group is reportedly postponing the initial public offering (IPO) of its North African hospitals business as it looks to resolve several issues with investors, informed sources told Bloomberg on Sunday.

The Dubai-based investment firm was planning to launch the IPO sometime in the first six months of 2018, but has now decided to delay the matter to October, the unnamed sources added.

As for Abraaj’s holdings in Egypt-based school operator CIRA, the sources said the company was “in advanced talks to dispose of its 35% holding” in the Egyptian schools.

Earlier this year, sources told Bloomberg that Abraaj had appointed Citigroup Inc. and EFG-Hermes Holding to manage the IPO of the North African hospitals, which comprises nearly a dozen hospitals and clinics in Egypt, Tunisia, and Morocco.

The IPO was valued at $500 million, the people had said in January.

As for the Egyptian school operator, the Abraaj Group is planning to sell the stake back to CIRA’s family shareholder.

“No final decisions have been taken and a deal may not happen,” Bloomberg reported, citing the sources as saying.

Considered the largest K-12 education group in Egypt, CIRA has 24 majority-owned schools operating under the "Futures" brand, according to Abraaj’s website. The Dubai-based investor had acquired a stake in the Egyptian brand in 2014.

The Dubai-based investment and buyout firm has suffered allegations that it “misused” money in a $1 billion healthcare fund. It is currently downsizing its workforce and halting new investments, while its founder Arif Naqvi is surrendering control of the fund management business.

In February, Abraaj conducted an internal review, which found that the money in its health fund had been properly accounted for. Despite that, it is still conducting a restructure, including Naqvi’s relinquishing of the fund management business.

The company will also return capital to investors in a new global fund.