Monday, March 4

Rapid growth in quotations of International Holdings Co: a UAE corporate phenomenon

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The reason for the increase in quotations of International Holdings Co

This year has brought many upheavals, from which the world may not recover yet. The coronavirus pandemic, the collapse of oil prices, the decline in global demand for raw materials, resulting in a shortage of storage facilities, all these factors have caused serious damage to the industry in many countries. However, there were those countries that even in difficult times were able to maintain high economic performance and even improve it. This fact was true for the United Arab Emirates. Last year and this year’s reports showed an increase in the quotes of local companies, which made the kingdom the world’s leader in increasing the value of shares.
The record was broken by International Holdings Co Corporation of Abu Dhabi. In 12 months, its shares rose by 2819%, which is hard to believe even for such a rich market as the UAE. Such a success of the holding raised it by 4 positions among the largest public companies registered in the Emirates.
Even the coronavirus pandemic and the oil situation did not affect the growth of the holding’s quotes, which caused a huge damage to the world economy and forced a number of large companies to go bankrupt. Now the capitalization of IHC Corporation is 14 billion dollars, although only a year ago its value was at the level of 133 million dollars.
Shares began to rise in price last year, but 2020 was not less successful for the corporation. During the first quarter quotations grew by 351%, which made it one of the UAE business leaders. By its value on the stock market IHC is second only to three local companies – telecommunications Emirates Telecom Group and two banks – First Abu Dhabi Bank and Emirates NBD.

The sphere of activity of this holding company is projects related to fishing and product export. IHC manages and invests in such farms and supplies delicacies to the domestic market and other countries. In addition, the corporation is represented in the real estate segment – it buys, sells and lets out properties.
The experts of the authoritative Bloomberg publication cannot fully understand the phenomenon of such success. Especially since IHC shares were not usually traded in large quantities – about 31 sales in 12 months. It happens that 1-2 such transactions are carried out on stock exchanges or they are absent at all.
At the same time, analysts of Business Insider put forward their theories of rapid rise of the corporation. In their opinion, the growth of quotations caused the company from Abu Dhabi to increase its revenue, last year it was 340 million dollars. This amount was achieved through a number of successful transactions – the acquisition of a full stake in 12 companies, which are represented in different segments.

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