Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
International Holding Company (IHC) has received approval to extend its share buyback programme until December 31, 2025, the company said in stock market filing on Monday.
IHC, established in 1999 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, valued at Dh1.8 billion, began on November 18 last year. The second tranche, worth Dh1.5 billion, was launched on March 18. With the second phase still underway, the buyback period has now been extended until the end of this year.
Responding to queries from Aletihad, an IHC spokesperson said IHC will provide an update on the third tranche once the second tranche has been completed.
So far, 6,955,602 shares have been repurchased. A March 25 disclosure said that value of total value of shares bought back till date stands at Dh2,819,694,733 (Dh2.819 billion). It leaves approximately Dh2.18 billion in buybacks remaining under the programme.
The buyback initiative is aimed at enhancing shareholder value and maintaining an efficient capital structure. At the time of launch, IHC’s Managing Director, Syed Basar Shueb, described the move as part of the company’s long-term commitment to generating value for its shareholders.
As per previous disclosures, all repurchased shares are to be held as treasury shares without voting rights. If these shares are not resold within two years, they will be cancelled, and the board will pass a resolution to reduce IHC’s share capital accordingly.
According to the latest stock market data mentioned in the filing, IHC’s market capitalisation stands at Dh881.8 billion. The company’s free float of shares, as per the April 7 disclosure, is 38.48%.
