IHC Announce $1.36 Billion Share Buyback Programme

International Holding Company (IHC), the global diversified Abu Dhabi-based conglomerate, on Thursday announced the launch of its $1.36 billion Share Buyback Program, beginning with an initial tranche of $370 million, representing 36% of the total program.

The first tranche is scheduled to commence on 18 November 2024. This strategic initiative underscores IHC’s commitment to enhancing shareholder value and optimising capital allocation, IHC said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) this morning.

The Share Buyback Program, approved at IHC’s General Assembly on 20 June 2024, and subsequently endorsed by the Board, will span one year with the possibility of extension pending regulatory approval.

The program will be executed in tranches on a monthly or quarterly basis, with multiple purchases within each tranche. Each tranche will be disclosed in alignment with ADX’s strict market transparency requirements. International Securities LLC, a licensed brokerage firm and IHC’s appointed financial institution, will exclusively manage and execute the purchases.

IHC CEO Syed Basar Shueb said that launching the Share Buyback Program reaffirms their commitment to generating long-term value for our shareholders. With IHC’s robust cash flow and strong balance sheet, the company is well positioned to implement this strategic initiative that reflects their confidence in IHC’s ongoing growth and market potential.

“This program marks a significant step in optimizing our capital structure while strengthening our position as a leader in sustainable value creation and growth,” he added.

This program represents a proactive approach to reinforcing shareholder value and maintaining an efficient capital structure, while reflecting confidence in the Group’s financial resilience and sustained growth outlook.

Enhancing Shareholders Returns

As IHC continues to strengthen its portfolio and expand its market presence, the Share Buyback Program will play a crucial role in enhancing shareholder returns and supporting the Group’s long-term vision.

IHC, which was founded in 1998 as part of an initiative to diversify and develop non-oil business sectors in the UAE and has grown to become the most valuable listed holding company in the Middle East with a market cap of $243.07 billion as of 30 September 2024.

The company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates. IHC is included in FTSE ADX 15 Index (FADX 15), representing the top 15 largest and most liquid companies on the ADX.

IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations. Comprising more than 1,000 subsidiaries, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Asset management, Healthcare, Real Estate and Construction, Marine and Dredging, IT and Communications, Financial Services, Food Production and Service, Utilities, and Services.