UAE’s IHC starts Dhs5bn share buyback programme

UAE’s International Holding Company (IHC) has launched its share buyback programme worth Dhs5bn ($1.36bn), the conglomerate said on Thursday.

IHC said in a statement that the first tranche of Dhs1.8bn, equivalent to 36 percent of the total, is expected to begin on November 18. The overall program will last one year, with the possibility of an extension.

The holding firm said the buyback is not just a financial move but a strategic decision aimed at enhancing shareholder value by increasing earnings per share.

The programme will be executed in tranches on a monthly or quarterly basis, with multiple purchases within each tranche. IHC’s subsidiary, International Securities, will exclusively manage and execute the purchases.

“This programme marks a significant step in optimising our capital structure while strengthening our position as a leader in sustainable value creation and growth,” said Syed Basar Shueb, the CEO of IHC.

“With our robust cash flow and strong balance sheet, we are well-positioned to implement this strategic initiative that reflects our confidence in IHC’s ongoing growth and market potential.”

The company’s shares, which were listed on the Abu Dhabi bourse in 2005, have risen 0.9 per cent to Dhs403.1 this year.

IHC reported an 18.3 per cent year-on-year increase in nine-month profit to $4.9 bn (Dhs18bn), driven by robust growth in core divisions, including real estate, construction, and the marine and dredging segment.

It posted revenues of Dhs64bn in the nine months to September 30, up 49.4 per cent YoY compared to Dhs42.8bn for the same period a year earlier, while its earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at Dhs21.8bn.

The holding firm’s financial position is backed by its total assets of Dhs382.9bn as of September 30, driven by investments and asset transfers, representing a 44.9 per cent growth since December 2023.

Formerly known as International Fish Farming Holding, IHC has grown exponentially to encompass over 900 subsidiaries and boasts a market capitalisation of Dhs894.9bn as of November 14, 2024 – surpassing the market value of major global brands like Walt Disney, McDonald’s, and L’Oréal.

Read: Abu Dhabi’s IHC posts Dhs18bn in nine-month net profit