Abu Dhabi-based diversified investment firm International Holding Company (IHC) has brought on board another investment holding company, Infinity Wave Holdings, as a ‘strategic shareholder’ and in the wake seen its share capital rise by 17% to AED 2.19 billion ($572 million) from AED 1.82 billion.
As part of the deal, IHC issued a little over 372 million new shares to Infinity Wave and in return, acquired the latter’s shares in its group companies Alpha Dhabi Holding, Multiply Group, and Al Seer Marine.
IHC is by far the largest company by market capitalization listed on the Abu Dhabi Securities Exchange (ADX). It is valued at AED 893 billion at its current share price of AED 407. IHC’s share price has zoomed 24% this year.
For the nine months ended September 2022, IHC and its subsidiaries including the Multiply Group have seen record profit numbers, even as the investment firm looks to expand its base in technology, while being a cornerstone investor in recent IPOs listed on ADX.
Alpha Dhabi, the Multiply Group and Al Seer Marine are also all listed on the exchange.
The deal will be net positive for IHC, and could lead to a rise in its share price on the ADX, where the mega holding company was listed back in the year 2000 and has been a standout performer over the last two decades.
“The decisions of the general assembly of IHC confirm confidence in the company’s strategy,” said Syed Basar Shueb, IHC’s CEO. “We are fully committed to delivering our strategic priorities to develop sustainable future profitable growth.”
IHC says it considers the rise in capital an “important step towards the company’s growth plans, expanding, transforming operations, and making further strategic acquisition as the company continues to expand internationally.”