UAE News: Abu Dhabi International Holdings Co. Shares Surge - Bloomberg:
An Abu Dhabi-based investment holding is leaving traders and investors scratching their heads after a 2,574% surge in its stock in the past 12 months with very low trading volumes.
International Holdings Co. PJSC, which had most of its revenue in 2019 coming from fish farming in the United Arab Emirates, has reached a market value as high as $14 billion, up from about $139 million a year ago. The steep rally in its shares hasn’t been dented by this year’s global equity market meltdown sparked by the coronavirus pandemic, or the collapse in oil prices which roiled Middle-Eastern markets. The company’s shares are up 313% in 2020.
The uninterrupted surge has made it the best performing stock worldwide in the past 12 months among companies worth $1 billion or more, and IHC is now the fifth-biggest listed group in the U.A.E. by market value, after Emirates Telecom Group Co., First Abu Dhabi Bank PJSC, Emirates NBD PJSC and DP World Plc.
The stellar rise in the shares is not easy to explain: At the end of last year, the company had total assets of only about $1.1 billion, with net profit for the year at $138 million, according to its annual report. It has been on a buying spree since the start of 2019, although none of the acquisitions had big price tags. PAL Cooling Holding LLC features among its biggest purchases, after IHC issued new shares worth about $357 million to pay for the company.
An Abu Dhabi-based investment holding is leaving traders and investors scratching their heads after a 2,574% surge in its stock in the past 12 months with very low trading volumes.
International Holdings Co. PJSC, which had most of its revenue in 2019 coming from fish farming in the United Arab Emirates, has reached a market value as high as $14 billion, up from about $139 million a year ago. The steep rally in its shares hasn’t been dented by this year’s global equity market meltdown sparked by the coronavirus pandemic, or the collapse in oil prices which roiled Middle-Eastern markets. The company’s shares are up 313% in 2020.
The uninterrupted surge has made it the best performing stock worldwide in the past 12 months among companies worth $1 billion or more, and IHC is now the fifth-biggest listed group in the U.A.E. by market value, after Emirates Telecom Group Co., First Abu Dhabi Bank PJSC, Emirates NBD PJSC and DP World Plc.
The stellar rise in the shares is not easy to explain: At the end of last year, the company had total assets of only about $1.1 billion, with net profit for the year at $138 million, according to its annual report. It has been on a buying spree since the start of 2019, although none of the acquisitions had big price tags. PAL Cooling Holding LLC features among its biggest purchases, after IHC issued new shares worth about $357 million to pay for the company.
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