Gulf News - No stopping Abu Dhabi Conglomerate IHC’s Buying Spree and Triple-Digit Growth

Vijay Valecha, Special to Gulf News August 13, 2021

Bucking global market trends, Abu Dhabi’s multi-sector conglomerate IHC, with a market cap of Dh254.9 billion, reported record revenues and profits for the first six months of 2021. And again reiterated its position as the one of the most valuable companies in the UAE.

Revenues came to Dh9.93 billion, a 304 per cent jump year-on-year, while profits were Dh4.36 billion, up by an astronomical 436 per cent. The 45 per cent tactical acquisition of a stake in the construction and real estate company Alpha Dhabi added Dh34.26 billion to total assets of IHC as of June 30.

Buying up everything

The growth trend during the first-half of the year owes a lot to the company’s appetite for investing in value accretive businesses at an opportune time. The group has increased the stake in Space X owned by Elon Musk through the VY GP Ltd.’s fund, to capitalize on the race to space. Through Alpha Dhabi Holding, IHC acquired 100 per cent of Murban Energy, 65.1 per cent in National Marine Dredging Co., 70 per cent in Mawarid Holding Investment, 100 per cent in Sublime Commercial Investment, and 31.5 per cent in Pure Health Medical.

Early this year, IHC acquired 60 percent stake in Afkar Financial and Property Investments. Through its subsidiary, Multiply Group, it took 48 per cent in Emirates Driving Company. In total, IHC scaled its business portfolio by 71 operating subsidiaries in the first-half, resulting in asset growth that drove strong revenue expansion and profitability.

Listings raise more visibility

During the period, the International Holding Company has listed two of its subsidiaries Alpha Dhabi Holding and Emirates Stallion Group on Abu Dhabi Securities Exchange (ADX) helping to unlock shareholder value, and giving investors the confidence that the company has plans for astute investments going forward. A pandemic could not deter the company from achieving significant milestones, bolstering the company’s vision to be a leader in the non-oil business sector.

Cash and bank balance for IHC increased to Dh15.46 billion, a 322 per cent surge reassuring investors that it has sufficient liquidity to execute its growth strategy. The diversified company achieved another milestone in the second quarter of 2021, when it became the most valuable listed company on ADX. The share price stands at 138.84, a massive 304 per cent leap that reiterates the fact that it has strong upside potential.

IHC seeks to diversify its holdings across a number of sectors, including real estate, agriculture, healthcare, food and beverage, utilities, industries, IT and communications, retail and leisure, and financial services. The conglomerate has clearly laid out a track for more of that fast-track growth…

Source:
Gulf News
24 Emirates