UAE’s IHC shareholders approve Dhs5bn share buyback program

UAE’s International Holding Company (IHC) said on Thursday that its shareholders approved its $1.36bn (Dhs5bn) share buyback plan, which represents around 0.6 per cent of the conglomerate’s capital.

The buyback, set to be implemented over a one-year period following the acquisition of regulatory approvals, is not just a financial move. It is a strategic decision aimed at enhancing shareholder value by increasing earnings per share, IHC previously said in a regulatory filing.

“We initiated a Dhs5bn buyback programme in May, supported by the company’s strong financial position, including significant cash flow and a healthy balance sheet,” says Syed Basar Shueb, the CEO of IHC.

“We believe that there is significant value in multiple sectors that will be important in the future.”

The Abu Dhabi conglomerate said the rationale behind the buyback is driven by its robust financial standing, characterised by significant cash flow and a strong balance sheet

IHC’s net profit for the first three months of the year rose by a record 87.6 per cent to Dhs8.02bn, almost double the Dhs4.27bn for the corresponding period a year ago, revenue reached Dhs19.29bn, up 22.5 per cent from Dhs15.74bn.

“The growth in the previous quarter was driven by strong performances in core divisions including real estate and construction, marine and dredging, technology, and our contracting business,” says Shueb.

Founded in 1998, IHC has grown exponentially over the years from a $200m firm with interests in fish farms and real estate into a conglomerate with more than 900 subsidiaries and a market capitalisation of $239bn (Dhs877bn) as of May 27, 2024 – bigger than Walt Disney, McDonald’s or L’Oréal.

Read: Exclusive: Syed Basar Shueb on how IHC is cracking the growth code