Abu Dhabi-based International Holding Company will repurchase shares worth Dh1.8 billion ($490 million) as part of its Dh5 billion share buyback programme announced earlier this year.
The first tranche, representing 36 per cent of the programme, is scheduled to start on November 18, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
The programme will be carried out on a monthly or quarterly basis, with multiple purchases in each tranche for a period of one year, with the possibility of extension subject to regulatory approval.
It was approved by IHC's shareholders during the general assembly in June.
“Launching the share buyback programme reaffirms our commitment to generating long-term value for our shareholders,” said Syed Shueb, IHC’s chief executive.
“With our robust cash flow and strong balance sheet, we are well positioned to implement this strategic initiative that reflects our confidence in IHC’s ongoing growth and market potential.”
IHC, founded in 1998 as part of a move to diversify and develop non-oil business sectors in the UAE, is among the most valuable listed holding companies in the Middle East.
It comprises more than 1,000 subsidiaries and plans to expand and diversify its holdings across asset management, health care, property and construction, marine and dredging, IT and communications, financial services, food production, utilities and services.
Some of the companies under its umbrella include Aldar Properties, Modon Properties, Adnec Group, Presight, Al Seer Marine and NMDC Group.
In January, it announced the formation of a new holding company, 2PointZero, which will have more than Dh100 billion in assets.
The new holding company will cover sectors including private equity and alternative investments, venture capital operations, asset management, financial services (micro financing and insurance), investment banking, securities brokerage and research, AI and technology, mineral and resource management, digital and cryptocurrency ecosystems, and mobility.
Last year, the company also increased its shareholding in Adani Enterprises, controlled by billionaire Gautam Adani, days after it sold off stakes in two other companies owned by the Indian businessman.
In September, NMDC Energy, a unit of IHC, was listed on the ADX after raising Dh3.22 billion from the sale of 1.15 billion shares, representing 23 per cent of its total share capital.
IHC is included in the FTSE ADX 15 Index, representing the top 15 largest and most liquid companies on the exchange.
IHC shares were trading 1.46 per cent higher when the market closed on Thursday, giving the company a market capitalisation of Dh897.1 billion.