Eshraq shareholders approve additional share buyback for up to AED 110 million; renew approval for cross-listing on Saudi Stock Exchange

  • Share buyback of AED 110 million (equivalent to 4 fils/share) to replace dividend as per the request of shareholders at the Company’s AGM
  • Already completed buyback of 70 million shares at an average 48% discount to the book value 
  • Shareholders also renewed the approval for cross-listing of Company’s shares on Saudi Stock Exchange (Tadawul)

Abu Dhabi, UAE: Eshraq Investments PJSC (“Eshraq” or “Company”) announced today that its shareholders approved acquisition of an additional 7% shares under its share buyback program for up to AED 110 million. The additional share buyback comes on the back of the request from the shareholders at its Annual General Meeting held on 28th April 2023 where shareholders recommended the Company to increase the shareholder distribution via an increased share buyback program and replace cash dividend. The buyback will capitalize on the current share price discount compared to the Company’s book value.

As of date, the company holds 93.06 million treasury shares. As part of the Company’s current buyback program, Eshraq has bought back c. 70.5 million shares since August 2022 at an average price of AED 0.4977, generating a book value gain of AED 32.73 million to its shareholders. The increased share buyback is expected to enhance shareholder value on account of acquisition at a discount to Eshraq’s book value. 

At the Company’s AGM, the shareholders also approved via a special resolution the renewal of Company’s plans to cross-list its shares on the Saudi Stock Exchange (Tadawul). In the past, the Company was unable to implement the cross-listing due to accumulated losses on Company’s balance sheet that did not meet the Saudi Stock Exchange criteria for cross-listing. The cross-listing was also delayed due to operational readiness of Abu Dhabi Securities Exchange and Tadawul. Following the Company’s capital reduction in July 2022 and with the 2022 net profits, the Company intends to revive the cross-listing process.

The additional buyback is subject to Securities and Commodities Authority approval.

Mr. Jassim Alseddiqi, Chairman of Eshraq Investments, said: “We are pleased to announce shareholder endorsement for an increase in share buyback. At the AGM, the shareholders proposed to opportunistically allocate the capital for buybacks versus dividend payment to benefit from the prevailing share price discount to Eshraq’ book value. The additional share buyback will further enhance long term shareholder value due to purchase of shares at a discount to book value.”

Added Alseddiqi “Eshraq has consistently delivered returns accretive to our shareholders, driven by a balanced and assertive strategy to enhance profitability. Going forward, we remain committed to leveraging opportunities to unlock further growth while delivering exceptional value to shareholders.”

About Eshraq Investments:

Eshraq Investments is an investment Company based in Abu Dhabi, UAE, with assets of more than AED3.8 billion in real estate, public equities, fixed income, private equity and debt products.