In November, Investcorp Capital completed a $450 million IPO, pricing the stock at Dh2.3 apiece. Image Credit: Supplied

Dubai: The ADX-listed Investcorp Capital reported $34 million in net profit for the July-December period, seeing the total drop from $41 million the year before. It was a decline in revenue from capital deployment - $19 million against $32 million - that led to the profit drop. (The company’s financial year runs the 12 months to end June.)

It was in November that the entity floated on ADX, offering 32.85 per cent at Dh2.3 apiece in the $450 million issue.

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The investment company announced an interim dividend of 10 fils a share, which it says represents a 9.6 per cent annualized dividend yield based on current traded price of Dh2.09. “This is in line with the company’s commitment to deliver a dividend yield of at least 8 per cent per year and is mostly driven by growth in NAV from the profits generated,” said a statement.

The results came about against a ‘challenging market backdrop’, the company added.

“Investcorp Capital is unique in the GCC, offering investors access to diversified private market opportunities globally across multiple asset classes and an attractive 9.6 per cent target dividend yield,” said Mohammed Bin Mahfoodh Alardhi, Chairman.

“We are also happy to introduce infrastructure as a fifth asset class to the company’s activities. The sector has shown great promise in recent years, especially after the COVID pandemic.”

Investcorp Capital’s targets recurring revenue through its ‘capital financing services’ business, which generates underwriting and commitment fees. Then there is the ‘capital deployments’ business, which generates recurring income, including rental income, dividend income and interest income.

Placing those investments

More than $100 million were invested across the company’s asset classes and geographies in H1-2024. Proceeds from capital deployment investment realizations over the period totaled $43 million, ‘lower than expected due to prevailing market conditions’.

“However, the portfolio remains strong and ready to deliver on target,” the company added.

This year, Investcorp Capital expects an improving investment environment, on the ‘back of the expected inflation and interest rate reduction in its core markets’.

“As market confidence continues to improve, Investcorp Capital expects to see increased capital deployment opportunities across its business, we well as increased exit activities across its portfolio,” the statement added.