Eshraq Investments, the Abu Dhabi-based real estate company, has received the green light from its shareholders to cross-list its shares and carry out a share buyback program of up to AED 110 million. The move comes as the company seeks to enhance its liquidity, improve its market position, and reward its investors.
The cross-listing of Eshraq’s shares is expected to take place on the Dubai Financial Market (DFM), which will enable the company to reach a wider pool of investors and increase its visibility in the UAE’s capital markets. The company’s shares are currently listed on the Abu Dhabi Securities Exchange (ADX).
Commenting on the approval, Eshraq’s Chairman, Jassim Alseddiqi, said: “The cross-listing of our shares on the DFM represents a significant milestone in our journey to enhance our liquidity and position ourselves as a leading player in the UAE’s real estate market. We are confident that this move will enable us to tap into new sources of capital and unlock greater value for our shareholders.”
In addition to the cross-listing, Eshraq’s shareholders have also approved a share buyback program of up to AED 110 million. The program, which will be implemented over the next 12 months, will allow the company to repurchase its own shares in the open market, which will boost the value of its remaining shares and provide an additional return to its investors.
The share buyback program is a popular tool used by companies to boost their stock prices and signal their confidence in the future performance of their business. By reducing the number of outstanding shares, companies can increase the earnings per share and provide a boost to their financial metrics.
Eshraq has been actively pursuing a strategy of enhancing its liquidity and improving its market position in recent years. The company has been investing in a range of real estate projects across the UAE, including residential, commercial, and hospitality developments.
The company has also been focusing on strengthening its balance sheet, reducing its debt levels, and increasing its cash reserves. In 2020, the company reported a net profit of AED 22 million, up from AED 10.6 million in 2019, which was driven by a combination of higher revenues and lower expenses.
The approval of the share buyback program and the cross-listing of its shares are expected to further strengthen Eshraq’s financial position and support its growth strategy. The company is well-positioned to benefit from the recovery in the UAE’s real estate market, which has been showing signs of resilience despite the challenges posed by the COVID-19 pandemic.
In conclusion, the approval of the cross-listing of Eshraq’s shares and the share buyback program is a positive development for the company and its shareholders. The move is expected to enhance the company’s liquidity, improve its market position, and provide an additional return to its investors. With a focus on strengthening its balance sheet and investing in a range of real estate projects across the UAE, Eshraq is well-positioned to capitalize on the growing opportunities in the country’s real estate market and deliver long-term value to its shareholders.
