Abu Dhabi megacorp IHC brings in Infinity Wave Holding as 'strategic shareholder' after capital rise to Dh2.1b
Infinity Wave Holding comes on board IHC after all-share deal
Dubai: Abu Dhabi’s International Holding Co. (IHC) – the UAE entity with the highest market cap – has completed the deal to bring in Infinity Wave Holding as a ‘strategic shareholder'.
In return, IHC will acquire Infinity’s shares held in IHC-owned entities such as Alpha Dhabi Holding, Multiply Group and Al Seer Marine. The deal will be processed through new shares issued by IHC.
It will be a net positive for IHC, further propelling the stock on ADX. Since 2000, IHC has been the standout performer on ADX, seeing a four-digit value gain and which fuelled its status as having the highest market cap on the Abu Dhabi stock exchange and ahead of Etisalat.
To finesse the Infinity Wave Holding transaction, IHC issued new shares, which raised the capital from Dh1.82 billion to Dh2.19 billion. This means total shares in the company became 2.19 billion, of which 372.11 million shares from the capital increase were issued to Infinity Wave's subsidiaries.
IHC has a market cap of Dh893 billion powered by a share price at Dh407. (The ADX in the year-to-date is up 24 per cent.)
Dh2.1 billion capital
"The decisions of the general assembly of IHC confirm confidence in the company's strategy," said Syed Basar Shueb, IHC's CEO. "We are fully committed to delivering our strategic priorities to develop sustainable future profitable growth."
IHC considers the rise in capital an 'important step towards the company's growth plans, expanding, transforming operations, and making further strategic acquisition as the company continues to expand internationally."
IHC has record profits to show at the nine-month 2022 mark, as it commits more funds to overseas investments, inside the region and well beyond. The company has also recently spoken about expanding its base in technology, while being a cornerstone investor in recent IPOs listed on ADX.
Multiply Group itself has seen some staggeringly impressive numbers during the same period, while Al Seer Marine is on a vessel buying and expansion spree and setting the course to be one of the biggest maritime companies in the world.