Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
International Holding Company (IHC) repurchased 359,836 shares worth Dh144 million at an average price of Dh401.57 in Friday’s trading at the Abu Dhabi Securities Exchange. The leading ADX-listed firm is close to completing the first phase of its share buyback programme.
IHC, established in 1998 to develop Abu Dhabi’s non-oil sectors, announced on November 14, 2024 that it had launched a Dh5 billion share buyback programme, set to take place in phases over a year.
The first tranche, worth Dh1.8 billion, commenced on November 18 last year. By March 15, IHC had repurchased shares worth Dh1.799 billion, leaving Dh184.77 million remaining to complete the first phase. A total of Dh3.2 billion worth of shares will be repurchased in subsequent phases, according to a stock market filing on Saturday.
The company has stated that multiple purchases will occur within each tranche. “Each tranche will be disclosed in alignment with ADX’s strict market transparency requirements,” said IHC Chief Executive Officer Syed Basar Shueb.
The buyback programme is designed to enhance shareholder value and maintain an efficient capital structure. “Launching the share buyback programme reaffirms our commitment to generating long-term value for our shareholders. With our robust cash flow and strong balance sheet, we are well positioned to implement this strategic initiative,” Shueb said.
According to the filing, all repurchased shares will be held as treasury shares and will not carry voting rights. “If treasury shares are not sold back in the market within two years, the shares will be cancelled, and the board of directors will pass a resolution to reduce the company’s share capital to the extent of the shares cancelled,” the ADX filing stated.
IHC’s market capitalisation stood at Dh880 billion, based on the latest data. It was the most traded stock by value on the ADX on Friday.
