Alpha Dhabi delivers Q1-2022 results and an 81% increase in stock price after ADX listing
Abu Dhabi holding company has a knack for the big deals that are paying off
Alpha Dhabi Holding, founded in 2013, now has over 5 verticals and more than 60 subsidiaries across healthcare, real estate and other sectors. The company announced a remarkable increase in Q1-2022 profits since its successful listing on the ADX in June 2021. As a result of smart acquisitions and expansion initiatives, it has a market cap of Dh272.2 million.
Last year, it bought the entire share capital of Murban Energy, a 70 per cent stake in Mawarid Holding Investment, and 100 per cent in Sublime Commercial Investment, through which it owns a holding in Aldar Properties. In addition, there are stakes in National Marine Dredging Company, Response Plus Medical, and Sandstorm Motor Vehicles Manufacturing.
The net profit increased to more than Dh1.97 billion in the three months to March 31, up from Dh100 million the previous year. Sales were up eight-fold year-on-year to Dh8.2 billion, compared to Dh1 billion last year. It purchased a 25.24 per cent investment in Al Qudra Holding in January last and boosted its holding in Aldar Properties, Abu Dhabi’s largest developer, to 29.8 per cent from 17.5 per cent.
Into digital banking too
Alpha Dhabi intends to optimize synergies, scale activities, and improve the efficiency of its current businesses to increase value. In parallel, it will continue to invest in firms that have a track record, stimulate innovation, are disruptive in nature, and complement Alpha Dhabi’s existing portfolio companies. Alpha Dhabi intends to introduce Wio, a new digital banking platform, in collaboration with Abu Dhabi’s ADQ, e&, and First Abu Dhabi Bank.
Alpha Dhabi’s stock has climbed 81 per cent since its IPO, justifying the high valuation and investors’ faith in the growth strategy. The enterprise’s expansion objectives are supported by a good pipeline of investment possibilities across core sectors. All of this made it a natural choice as one of UAE’s entries in the FTSE global equity index series. This has increased Alpha Dhabi’s visibility among global investors. The mega-corporation is on track to accomplish Abu Dhabi’s Vision 2030 goal.