IHC starts buyback after profit surge

Abu Dhabi’s International Holding Company has begun an AED1.8 billion share repurchase, opening the first tranche of an approved AED5 billion buyback after a sharp rise in first-quarter profit and continued expansion across its investment portfolio.

The initial purchase, launched on 12 June, represents 36 per cent of the total programme approved by shareholders at the company’s annual general assembly on 16 March and disclosed later that month. IHC said the programme will be carried out in tranches, with purchases made periodically and disclosed through the Abu Dhabi Securities Exchange and the company’s investor channels.

International Securities LLC has been appointed to manage and execute the purchases on IHC’s behalf. The repurchase will be conducted under ADX trading rules, placing the transaction within the exchange’s framework for listed-company buybacks rather than a one-off negotiated purchase.

The move marks IHC’s second share buyback programme and adds a capital return component to a year already defined by aggressive portfolio management, investment gains and expansion into financial services, technology, energy, mining, real estate and infrastructure. Share buybacks typically reduce the number of shares in circulation, which can lift earnings per share and signal management confidence, although the actual effect depends on execution price, market conditions and the final treatment of repurchased shares.

The scale of the first tranche is modest against IHC’s market value, which was around AED840 billion after the shares traded near AED385 on ADX at the end of the week. The full AED5 billion authorisation amounts to less than 1 per cent of that market capitalisation, suggesting the programme is aimed more at capital discipline and market signalling than a material restructuring of the equity base.

IHC’s financial backdrop has strengthened the case for a controlled buyback. Revenue rose 33.2 per cent year on year to AED31.4 billion in the first quarter of 2026, while profit after tax increased 98.5 per cent to AED8.2 billion. Total assets stood at AED445.3 billion, with return on equity at 17.8 per cent. The company also reported broad contributions from real estate and construction, marine and dredging, energy and mining, financial services, technology, and hospitality and leisure.

Chief executive Syed Basar Shueb has framed the programme as part of “disciplined capital allocation” and sustainable value creation for shareholders. The message is consistent with IHC’s strategy of recycling capital from non-core or minority holdings while retaining firepower for acquisitions in sectors where it seeks scale or control.

That strategy has become more visible over the past year. The group has outlined plans to exit minority investments worth $20 billion to $25 billion over an 18-month period where those stakes are not central to its long-term positioning. It has also continued to pursue controlling or strategic stakes, including a $1 billion investment to acquire a majority position in Sammaan Capital, while its subsidiaries and platforms have expanded in asset management, finance, digital infrastructure and industrial ventures.

IHC’s evolution from a relatively small listed business into one of the world’s largest investment companies has made its capital actions closely watched across Gulf markets. The group says it has more than 1,300 subsidiaries and interests across a wide range of sectors, with an investment model shaped by Abu Dhabi’s broader push to deepen capital markets, expand private-sector champions and channel long-term capital into strategic industries.