The shares of a dark Abu Dhabi company have become the best-performing in the world, and no one knows for sure why.
International Holdings Co. PJSC (IHC), which made most of its 2019 revenue from fish farming in the United Arab Emirates, reached a market value of $ 14 billion, up from $ 133 million a year ago. In total, its shares have reported a 2,819% increase in the last 12 months, and the most striking thing is that the trading volumes have been very low.
IHC is now the fifth largest group on the US list by market value, after Emirates Telecom Group, First Abu Dhabi Bank PJSC, Emirates NBD PJSC and DP World.
The rise in the share price remains a mystery. According to a Bloomberg report, at the end of last year, the company had total assets of only about $ 1.1 billion, with a net profit for the year of $ 138 million, according to its annual report.
It has been involved in a wave of acquisitions since the beginning of 2019, although none at a great price. PAL Cooling Holding is among its biggest purchases, after IHC issued new shares worth approximately $ 357 million to pay the company.
A share with very little liquidity
In the last 12 months since May 10, there were 9,585 different transactions in the stock on the Abu Dhabi Stock Exchange, at an average of 30.9 per day.
And in just two sessions – April 13 and 14 – the company’s market capitalization increased by approximately $ 2.2 billion.
In a statement to the exchange on April 15, IHC said the price change on those two days was due to increased offers and a lack of market orders.
To add further intrigue to the matter, according to data tracked by Bloomberg, no equity analyst covers IHC stocks despite their size. In contrast, at least three analysts cover most US companies worth $ 5 billion or more.
The power behind IHC appears to be Sheikh Tahnoon Bin Zayed Al Nahyan, a member of the Abu Dhabi royal family who became president of IHC in April. He is the second largest shareholder of IHC and is also the Chairman of ADQ, formerly known as Abu Dhabi Development Holding, a large company that has assets in several different industries, including the Abu Dhabi Stock Exchange, on which the shares of IHC.
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