Abu Dhabi’s Alpha Dhabi 36% stock gain rests on a solid foundation
Abu Dhabi investment company is prepping for its next step, into overseas markets
Alpha Dhabi Holding is one of the fastest-growing Abu Dhabi-based investment holding companies, with more than 100 businesses spread across healthcare, real estate, and other industries. A significant milestone was reached with Alpha Dhabi reporting its first financial results since its successful listing on ADX in June 2021. The company now has a market valuation of Dh272.6 billion brought on by strategic acquisitions and expansion.
Due to its substantial investment activity, the net profit was Dh5.2 billion for 2021. This was up from Dh218 million in 2020, while revenues recorded an increase of 400 per cent from Dh3.8 billion due to the investment activity, the strength of its subsidiaries, and a flourishing market environment in the UAE in 2021. As part of its growth ambitions, Alpha Dhabi has continued to build scale and diversify its portfolio. It reached Dh47.3 billion in assets under management as of the end of 2021.
To enhance value, Alpha Dhabi aims to maximize synergies, scale up operations, and improve the efficiency of its existing entities. In tandem, the company will continue to invest in businesses that have a solid track-record, foster innovation, are disruptive in nature, and simultaneously complement existing portfolio companies. One such was the acquisition of a significant stake in Aldar Properties in 2021.
Overseas lookout
As part of its wider strategy, Alpha Dhabi will pursue international investment opportunities that will present the appropriate growth and return profile, while remaining focused on a balance between steady and stable recurring income businesses and high-growth. As reported recently, it is exploring opportunities in Egypt and Saudi Arabia. Egypt has a large market that can absorb more deals.
Additionally, Alpha Dhabi is the latest listed company from the UAE to make the FTSE Global Equity Index series. This has further secured a global investor spotlight.
Alpha Dhabi’s stock price has risen by 36 percent since the listing, justifying the high valuation and investors’ confidence in its strategy. If ADH achieves operational synergies and maximizes cost reductions across all verticals, then it can increase shareholder value.