Eshraq Investments buys back 5m shares to give stock a boost
Abu Dhabi company also wants to reduce its real estate exposure and go big on tech
Dubai: Abu Dhabi’s Eshraq Investments confirmed that it has bought back 5 million of its shares, representing 10 per cent of its subscribed share base. These were bought for 0.43 fils.
The company, which has investments across asset classes, including in real estate, had last week said it would be making use of the low share price to buy back shares from the market. It was December last that the stock market regulator extended Eshraq's buyback programme.
On Thursday, the company confirmed that it had made good on the move – it’s not clear whether it will keep adding to the buybacks. Market sources say more listed companies will try and go the buyback way to give a lift to share prices.
Eshraq reported a net profit of Dh20.45 million for the second quarter, but a net loss of Dh26.70 million for the first-half of 2020. With its investment portfolio, the company wants to pivot away from a high real estate exposure and instead commit more funds into the technology space.
“Over the next three to five years, the portfolio of assets is [to be] balanced between real estate, technology, and other financial investments,” according to a statement it issued.