Abu Dhabi Conglomerate to Invest USD 381M in Adani Enterprises

International Holding Company, an Abu Dhabi conglomerate, announced that it would invest 1.4 billion dirhams (US$381.17 million) in Adani Enterprises' follow-on public offer.

IHC's statement comes as the Indian company, owned by Asia's richest man, Gautam Adani, has seen its market value plummet by US$65 billion after Adani's rebuttal of a US short-criticism seller's failure to appease investors.

"Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises; we see a strong potential for growth from a long-term perspective and added value to our shareholders," IHC CEO Syed Basar Shueb said in a statement.

Last year, IHC, Abu Dhabi's largest publicly traded company, invested $2 billion in Adani Group companies, including Adani Enterprises.

Adani Group has responded to Hindenburg Research's report published last week, which raised concerns about Adani Group's debt levels and use of tax havens.

Adani stated that it complied with all local laws and made all required regulatory disclosures.

Adani Enterprises' US$2.5 billion follow-on share offering, which closes on Tuesday, will put investors' reactions to Hindenburg's criticisms to the test this week.

"The advantage of the FPO (follow-on offer) is the historical reference for the company's earnings report, company's management, business practices, and much data to bank on before making any investment decision," Shueb said in a statement, which did not mention the Hindenburg report or its impact.

As a matter of policy, IHC spokesman Ahmad Ibrahim stated that the company does not comment on the activities of other companies.

Shueb stated that the company is "closely monitoring the international market for new prospects, and we will continue exploring further opportunities outside our traditional market in 2023."

Sheikh Tahnoun bin Zayed Al Nahyan, the UAE's national security adviser and the president's brother, chairs the Abu Dhabi conglomerate. It has risen rapidly to dominate Abu Dhabi's stock market, with two of its subsidiaries ranking among the top four companies in terms of valuation.

IHC expects to increase its global acquisitions by 70% this year, with a focus on the clean energy and food processing sectors.