Alexis Sheikh’s Post

#UAE #abudhabi #saudiarabia #dubai #aramco An interesting article about Abu Dhabi Stock Exchange (ADX)-listed IHC (International Holding Company). The article has a rather misleading note, which needs to be corrected. It states that "Locals own 88% of IHC, according to data from the Abu Dhabi bourse." 1. "Locals" do not necessarily own IHC. Rather, one "local" (UAE) corporate entity, "the Royal Group" owns the controlling stake in IHC. 2. Go to the 2023 financials of IHC and it states in black and white the following: "Royal Group Holding LLC is the Ultimate Parent of the Company." 3. Royal Group, in turn, is owned and controlled by HH Shaikh Tahnoon bin Zayed al Nahyan. Shaikh Tahnoon is an incredibly capable, low key and plugged in royal. He succeeded/replaced Shaikh Mansoor. Shaikh Tahnoon is also in charge of the "national security" (used to be Shaikh Hazza) and the strategic "AI/GPU" dossiers (G42). 4. Float of IHC on the Abu Dhabi Exchange: The float is the number, which refers to the percentage of shares owned by third parties (retail and institutional). The actual float of IHC is less than 40%. 5. IHC is not a Berkshire Hathaway but a good stock to have alongwith Aramco and Etisalat. Why? * Aramco is a great dividend stock * So is Etisalat * IHC, on the other hand, is a great growth story, but not because of its earnings (not much there. Go over the cashflow statement. Cashflow from operations is not significant; rather the cash flow or outflow from investments funded by debt. The IHC growth story is the Shaikh Tahnoon “trade", to use a Wall Street parlance. You buy the shares and let them ride as you are essentially riding on the coattails of Shaikh Tahnoon. Here's why: Assets: $99 billion (Q2 2024) Cash: $12 billion (Q2 2024) Equity: $61 billion (Q2 2024) Debt: $72 billion (Q2 2024) Enterprise Value: $121 billion ($72 + $61 billion - 12 billion) Revenue: $16 billion (2023; mostly, real estate, dredging, construction and food production; so nothing extraordinary) EBITDA: $8 billion (it is an investment company; done get confused!) Net Income: $9 billion Asset Turnover: 22.5% (not exactly a good number, given the size of the assets) Return on Assets: 12.5% (average) Return on Equity: 6.2% (not stellar) Observations: 1. IHC owns/controls hundreds, repeat, hundreds of entities directly or indirectly. The audit must have been a nightmare. 2. IHC's corporate governance is not what those in the US would expect. 3. No "Hindenburg" or "Muddy Waters" short stock shops or Elliot Management (activist shops) could short the stock or become activist in IHC. IHC has a deep, deep moat. 4. The stock's trading volume is pretty controlled due to the low float and the insiders. 5. IHC could be a share buy-back trade but the third party investors don't have much sway over the controlling investors/insiders. 6. The financials are a minor part of the IHC story. 7. Buy the stock if you have a belief in the UAE, Inc. "trade". I do.

Stocks listed in the UAE are now worth more than $1 trillion for the first time, helped by a surge in firms tied to an Abu Dhabi royal that account for more than a third of the total value, and a flurry of local listings. That makes the combined UAE market, which includes exchanges in Dubai and Abu Dhabi, bigger than Milan or Madrid. While dwarfed by the nearly $3 trillion Saudi Arabian bourse, the UAE is larger than most emerging markets, barring a few like India and China, according to data compiled by Bloomberg.

UAE stock markets have hit a remarkable $1 trillion in market capitalization, driven by record-breaking IPO activity and strong economic growth. Recent listings like Lulu Group and Talabat reflect the UAE’s leadership in the GCC, capturing 69% of IPO proceeds in Q3 2024. With a robust pipeline of offerings expected next year and a thriving non-oil economy, the UAE’s markets are well-positioned for sustained growth. #UAE #StockMarkets #IPO #EconomicGrowth #ADX #DFM #Investments #MiddleEastFinance #EmergingMarkets #GCC #MarketMomentum

🇦🇪 UAE MARKET CAP TOPS $1 TRILLION !! 🇦🇪 In a new milestone, the combined market capitalization of Dubai and Abu Dhabi stock exchanges has reached $1 trillion value for the first time. The surge in market cap is driven by a string of new share listings in the last couple of years. UAE stock market is part of the MSCI Emerging Markets Index comprising 1.2% of the benchmark. UAE has overtaken developed markets like Milan and Madrid and is also larger than most emerging markets barring China, India and Saudi Arabia. Source: Bloomberg #UAE

The UAE’s top 20 publicly listed companies have collectively reached a staggering market capitalization of AED 2.79 trillion ($762.32 billion), accounting for 77.6% of the nation’s total market value of AED 3.59 trillion. This surge underscores the dominance of these key players in the local stock exchanges, with further growth anticipated as the UAE pursues plans to double its market value to AED 6 trillion in the coming years. #Equities #Markets #News #Finance360 #UAE

UAE stock markets hit $1 trillion for the first time boosted by IPOs. The total market capitalisation of the two bourses that make the UAE market is bigger than Milan or Madrid, according to data compiled by Bloomberg. While dwarfed by the nearly $3 trillion Saudi Arabian Tadawul stock market, the UAE is larger than most emerging markets, barring a few like India and China, the data shows. www.bakinv.com #bakarainvest #stocks #stockmarket #uae #Saudi #ipo #china #markets #investing #money

Here are seven recent examples of leading #privateequity #exits across #Africa. The illustrate all four of the typical routes for exit: 1. Sell to a strategic buyer 2. Sell shares through an offer on a public market/ securities exchange 3, Management buyout 4. Secondary sale - to a middle market or bigger fund, that is prepared to pay for a more mature business with a strong track record. https://lnkd.in/ekYsu5qh. Currently, secondary sales are predominating as bigger funds are keen to take on some of Africa's star businesses. Bourse de Casablanca and Mediterrania Capital Partners have worked together on some great exits, including Travaux Generaux De Construction De Casablanca S.A TGCC. However, too few of the recent exits involve African #stockexchanges. Exchanges look forward to quality companies coming to list their shares after benefitting from growth as well as strategic and governance improvements in partnership with good private equity partners. Is the reason that the local institutional investors (pension and insurance funds) don't show enough interest? #institutionalinvestors #pensionfunds #insurancefunds

Stocks listed in the United Arab Emirates have surpassed a total value of $1 trillion for the first time. This milestone was driven by a surge in companies linked to an Abu Dhabi royal and a series of local IPOs. Companies associated with Sheikh Tahnoon bin Zayed Al Nahyan, including International Holding Company (ADX:IHC) ., played a significant role in reaching this valuation. The UAE's stock market now ranks among the largest in emerging markets, reflecting the ambitions of Abu Dhabi's ruling family to establish the city as a global financial hub.

Africa's securities exchanges and private capital are part of the same ecosystem. In many markets, listing on a stock exchange are a primary route for funds to exit their investments. In Africa, it has been going slower in recent years, and more of the action is #privateequity funds selling to other private equity funds.

Today's UAE equity highlights include more gains for Alpha Dhabi, up 3.4% off the back of well received earnings news. Starting off what could be a very significant week for global politics with the US election, both the Dubai and Abu Dhabi benchmark equity indices lost ground. The FADGI dropped back by 0.2% whilst losses on the DFMGI were somewhat more pronounced at almost 0.8%. Agility Global looked to be the best performer of the large cap stocks, up 6.5% on the day. A filing over the weekend noted that the board will meet next Monday to discuss Q3 results and agree dividend distributions. Volumes were notably higher than normal. Alpha Dhabi was in second place with gains of 3.4%. That’s extending gains which started ahead of the weekend break following the publication of quarterly earnings. Group net profit had more than trebled to Dhs4.39bn, whilst total revenues were up by around 40% to Dhs14.9bn. A $500m investment in the company by GQG partners was also announced. It’s an notably thinly traded stock, but National Bank of Fujairah saw its share price plummet although given the lack of liquidity it’s difficult to read much into this. There’s no news out but the stock ended down 9.9% on the day.