DUBAI (Reuters) – Abu Dhabi conglomerate International Holding Company (IHC.AD) on Monday invested 1.4 billion dirhams ($381.17 million) in a follow-up public offering of Adani Enterprises (ADEL.NS) announced.
The IHC statement said the Indian company, owned by Asia’s richest man, Gautam Adani, had hit $650 in the market value of the company after Adani’s rebuttal to US short seller criticism failed to appease investors. It was announced after facing a loss of $100 million.
Said Bassar Shub, CEO of IHC, said, “Our interest in Adani Group is underpinned by our confidence and belief in the fundamentals of Adani Enterprises Ltd. From a long-term perspective, we see great potential for growth. We anticipate added value for the company and our shareholders.” statement.
Abu Dhabi’s largest publicly traded company, IHC, last year invested $2 billion in Adani Group companies, including Adani Enterprises.
The Adani Group has responded to a Hindenburg Research report published last week that raised concerns about the Adani Group’s debt levels and use of tax havens.
Adani said it complies with all local laws and makes the necessary regulatory disclosures.
Investor reaction to Hindenburg’s criticism will be tested by Adani Enterprises’ $2.5 billion follow-on public offering, which closes Tuesday.
“FPO (Follow-On-Offer) benefits are historical references to company earnings reports, company management, business practices and the many data we rely on before making investment decisions,” Shub said in a statement. but it wasn’t there. Describe the Hindenburg Report or its impact.
IHC spokesman Ahmad Ibrahim said the company does not comment on the activities of other companies as a matter of policy.
Schweb said the company “is keeping a close eye on the international market for new prospects and will continue to explore further opportunities outside of its traditional markets in 2023.”
The Abu Dhabi conglomerate is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE’s National Security Advisor and brother of the UAE President. It has grown so fast that it dominates Abu Dhabi’s stock market, and two of its subsidiaries rank among the top four by valuation.
IHC aims to increase global acquisitions by 70% this year, with a focus on clean energy and food processing sectors, the company said.
($1 = 3.6729 United Arab Emirates Dirham)
Reported by Yousef Saba.Edited by David Goodman and Jane Merriman
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