IHC (International Holding Co.) of Abu Dhabi has a market cap of Dh358.2 billion and has turned in a stellar growth trajectory on the back of multiple subsidiaries rolling out IPOs and through partnerships built over the years. The company invested in Elon Musk's SpaceX company in 2020, entered a partnership with DAL Group for agriculture in Sudan, and helped marketing consultancy Multiply invest in a New York data-driven marketing company. In 2021, on the back of strategic deals with Alpha Dhabi Holdings, Al Seer Marine, etc., IHC’s stock rallied 253 per cent.
This strengthened the conglomerate's balance-sheet and resulted in unaudited net profits of Dh11.3 billion for 2021 compared to Dh3 billion in 2020, a 275 per cent increase. IHC's revenues shot up by an equally impressive 303 per cent to Dh28.3 billion, beating 2020's Dh7 billion and confirming the company's decision to focus on existing verticals and new local and international investments.
The thirst for acquisitions supports its mission to transform the Middle East business momentum. IHC's solid per-share earnings reached Dh4.01 at the end of December last, an increase of 154 per cent compared to Dh1.58 a year ago. The target is to touch Dh17 billion in profit this year.
An Adani alliance
The group’s presence straddles healthcare, foodstuffs and real estate, and will be powered by further IPOs, acquisitions, expansion plays, and international forays. IHC will invest $2 billion in three Adani Group companies, one of India’s biggest enterprises. The three ‘green-focused companies’ are Adani Green Energy, Adani Transmission and Adani Enterprises. This marks the start of a wider relationship between Adani and IHC and will draw in further investments from the UAE into India. IHC believes that India is driving much innovation globally, including in the green energy sector. The opportunity to earn a compelling return on investment in green energy has never been greater.
IHC is poised for attractive growth as it has several IPOs and collaborations in the pipeline, and this would enhance shareholder value going forward.