- International Holdings stock has surged 75% in the past three weeks.
- IHC’s market cap has hit $43 billion, valuing it higher than First Abu Dhabi Bank.
- The UAE holding company owns a fund with a stake in Elon Musk’s SpaceX.
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A SpaceX investor has seen its stock price surge 75% in the past three weeks for no apparent reason.
International Holdings’ market capitalization has soared to a record $43 billion as a result, surpassing the market value of First Abu Dhabi Bank – one of the region’s biggest lenders.
IHC owns or part-owns businesses across multiple industries including food packaging, military equipment, and air conditioning. Last year it purchased a 94% stake in Falcon CI IV LP, a private equity fund in the Cayman Islands that has invested in Elon Musk’s SpaceX, according to Reuters.
The holding company’s shares are closely held by Emiratis and no analysts cover the company, according to Bloomberg, making it tough to diagnose what’s behind the recent stock move.
Century Financial’s investment chief, Vijay Valecha, told Bloomberg that IHC’s investments are “audacious and sometimes baffling” but its bosses have “delivered the goods” so far.
IHC’s stock has climbed from 50 dirhams ( $13.60) on March 22 to 87.50 as of Thursday, after trading as high as 94 dirhams on Wednesday. It has more than doubled in price this year already, after more than doubling last year.
The company’s gains might reflect the fact that its more than tripled its revenue and more than doubled its net profit last year.
Its outperformance coincides with Sheikh Tahnoon bin Zayed al-Nahyan becoming the company’s president. The Sheikh is also a national security advisor to the UAE and is part of the country’s royalty – his brother is the crown prince of Abu Dhabi.
Additionally, he holds leadership positions at IHC’s biggest (and only direct) shareholder, Royal Group, and at First Abu Dhabi Bank.