Abu Dhabi heavyweight IHC starts Dh5 billion share buyback
First tranche will be for Dh1.8b as IHC targets 'capital optimization'
Dubai: The Abu Dhabi powerhouse International Holding Company has launched a Dh5 billion share buyback program, starting with an initial tranche of Dh1.8 billion. That's 36% of the overall buyback program.
The first tranche is to commence on November 18. "This strategic initiative underscores IHC’s commitment to enhancing shareholder value and optimizing capital allocation," said a statement.
The share buyback program was approved at IHC’s general assembly on June 20. It will span one year but 'with the possibility of extension pending regulatory approval'.
It will be done 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," the statement added. (International Securities llc, a licensed brokerage firm and IHC’s appointed financial institution, will exclusively manage and execute the purchases.)
The buyback 'reaffirms our commitment to generating long-term value for our shareholders," said Syed Basar Shueb, CEO of IHC. "With our robust cashflow and strong balance-sheet, we are well positioned to implement this strategic initiative that reflects our 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."