International Holding Company (IHC), the largest company listed on the Abu Dhabi Securities Exchange, said on Monday it would buy back up to 5 billion dirhams ($1.36 billion) of its own shares after reporting a near-doubling in first-quarter profit.
The company added in a disclosure today that its profits for the first three months of the year rose to 8.02 billion dirhams from 4.27 billion a year ago, while revenues grew to 19.29 billion from 15.74 billion in the first quarter of 2023, driven by strong performance in key sectors including real estate, construction and technology.
According to the company’s statement, the exceptional decision taken by the Board of Directors of International Holding to approve a share buyback program worth a total of AED 5 billion will be implemented over a period of one year, with the aim of enhancing shareholder value by increasing earnings per share.
The statement said that the aim of this initiative is to cancel the purchased shares while adhering to the trading controls stipulated in the Abu Dhabi Securities Market, which are subject to the decisions of the Board of Directors.
The statement added: The reason behind this decision is due to the group's strong financial position, which is characterised by a large cash flow and a strong balance sheet, noting that the buyback programme will be implemented following the approval of the General Assembly and obtaining the necessary regulatory licences.
