IHC Announces $1.4 Billion Share Buyback Plan After Record Profit Surge

Abu Dhabi-based conglomerate International Holding Company (IHC) has announced plans to repurchase shares valued at up to AED 5 billion ($1.4 billion), equating to approximately 0.6% of the company's capital. This decision was approved by shareholders during the General Assembly Meeting held on Thursday, according to a disclosure on the Abu Dhabi Securities Exchange (ADX).

The share buyback, set to be carried out over the next year pending regulatory approvals, follows IHC's impressive financial performance. The initiative aims to enhance shareholder value by increasing earnings per share, a move underscored by the company's robust financial health, marked by substantial cash flow and a strong balance sheet.

In the first quarter of this year, IHC reported a net profit of AED 8 billion, an 87.6% increase from the AED 4.3 billion recorded during the same period last year. The surge in profits was driven by strong performances across its core sectors, including real estate and construction, technology, marine and dredging, and food and services. Additionally, IHC's revenues saw a 22.5% rise, reaching AED 19.3 billion.

Source: Cleofe Maceda / Zawya