International Holding Co. (IHC), the UAE’s investment powerhouse, has posted robust financial results for the first half of 2024, marking a significant milestone in its growth trajectory. The Abu Dhabi Securities Exchange (ADX)-listed conglomerate reported a staggering profit of Dh12.3 billion, an 18% increase compared to the same period last year, driven by a sharp rise in revenues.
IHC, known for its vast portfolio, saw its revenues soar by 46% to Dh41.7 billion, underpinned by its diversified investments across multiple sectors including real estate, construction, hospitality, and marine services. The company’s expansive business model continues to bear fruit, reinforcing its position as a leading force in the region’s economic landscape.
Market Leadership and Expansion
With a market capitalization of Dh890 billion, IHC holds the distinction of being the most valuable listed company in the UAE. Despite market fluctuations, IHC’s stock has managed a 2% increase in the year-to-date, reflecting investor confidence in its strategic direction.
“IHC is well-positioned for sustained growth and agility throughout the remainder of 2024 and beyond,” said Syed Basar Shueb, CEO of IHC, highlighting the company’s ability to maintain momentum despite its already massive scale. The first half of the year has seen IHC continue its aggressive expansion strategy, both through organic growth and strategic acquisitions.
Strategic Acquisitions and Share Buybacks
In a move that underscores its commitment to enhancing shareholder value, IHC’s shareholders approved a share buyback program in June, authorizing the repurchase of shares worth up to Dh5 billion. This follows the IHC Board of Directors’ proposal earlier in the year, aimed at optimizing the company’s capital structure and supporting its stock price.
The first half of 2024 was marked by significant acquisitions that have further diversified IHC’s portfolio. A key highlight was the acquisition of a 14.83% stake in the South American food processing giant Grupo Nutresa, signaling IHC’s intent to deepen its footprint in international markets.
Domestically, IHC made a strategic move in the real estate sector by combining Modon Holding (formerly Q Holding) with Modon Properties, the Abu Dhabi National Exhibitions Company (Adnec), MIZA Investments, and other real estate assets. This consolidation, valued at 9.49 billion newly issued shares, has created one of the largest real estate entities in the UAE.
Global Ventures and Technological Investments
IHC’s global ambitions were further evidenced by its subsidiary, International Resources Holding, acquiring a 51% stake in Mopani Copper Mines in Zambia, one of the largest producers of copper and cobalt worldwide. This acquisition aligns with IHC’s strategy to secure valuable resources and expand its influence in critical global industries.
In the tech and innovation space, IHC group entity 2PointZero made headlines with its acquisition of a 49% stake in Citadel, a leader in the Middle East’s burgeoning crypto mining sector. This move marks IHC’s entry into the blockchain industry, positioning it at the forefront of technological advancements in the region.
Additionally, Enersol, a joint venture between IHC subsidiary Alpha Dhabi Holding and Adnoc Drilling, secured a 42.2% equity stake in Gordon Technologies, further bolstering IHC’s investments in energy and technology.
Outlook
As IHC continues to expand its portfolio and strengthen its market presence, the company remains focused on long-term growth and value creation. The first half of 2024 has demonstrated IHC’s ability to navigate complex markets, leveraging its diverse investments to achieve remarkable financial performance. With a robust pipeline of projects and acquisitions, IHC is set to continue its upward trajectory, solidifying its status as a key player in the global investment arena.
