Dubai: The Abu Dhabi based Multiply Group, part of the IHC portfolio, has unveiled one of the biggest profits by listed companies in the UAE, with Dh9.29 billion in the three months between July to September of 2022. It was led by investment and other income, which brought in Dh9.25 billion.
Last year, same three-month period, profit was Dh124 million.
“Multiply Group delivered a strong quarter with substantial investment gains and continued growth of our verticals,” said Samia Bouazza, Group CEO and Managing Director. “Going forward, we are actively ensuring deal flow continues at a similar pace throughout the fourth quarter and into next year.
We see significant investment opportunities, locally and globally, particularly within our mobility vertical and will continue to acquire cash-generating assets and further accelerate our companies’ growth.
– Samia Bouazza
The investment company did this while generating revenues of Dh284 million. (Assets were at Dh30 billion.)
The stock shot up 2.54 per cent early Friday, to Dh4.04 with the traded value at Dh42.29 million in the first 5 minutes.
Pumping in those billions
The third quarter saw Multiply Group expand its energy and utilities vertical with two ‘strategic investments’.
• The Group acquired a 7.3 per cent stake in Abu Dhabi National Energy Company – or TAQA – for Dh10 billion. TAQA is one of the largest listed integrated utility companies in EMEA, with operations in 11 countries across four continents. It has significant investments in power and water generation, transmission and distribution assets.
• Multiply Group also acquired 80 per cent of International Energy Holding. IEH recently acquired a 50 per cent stake in Kalyon Enerji Yatrimlari A.Ş., a clean and renewable energy company based in Turkey. Kalyon Enerji’s assets include a PV power plant project with an installed capacity of 1.3GW in the Konya’s Karapinar region and other renewable energy projects in various cities of Turkey.
“These investments are part of a drive to grow all verticals and reflect the group’s view that utilities and energy offer predictable, recurring revenue as well as strong growth potential as the world transitions to clean and renewable energy,” said a statement.
Multiply Group has also been a cornerstone investor in some of the recent Dubai IPOs.
Accoding to Vijay Valecha, Chief Investment Officer at Century Financial, “The investment in Turkish renewable energy assets is an example of a brilliant long term strategy. Scooping up an asset when the lira is trading near multi-year lows against the dollar will not only deliver capital appreciation but also gains on the currency front when the lira recovers eventually.
“The Dh45 billion market cap company can see its shares rally further given its strong asset base. Indeed it looks undervalued with the TAQA stake alone valued at around Dh24 billion in the current market.”