IHC — majority owned by Royal Group — has catapulted from a little-known investor focused on fish farming to become the UAE’s most-valuable listed company.
It’s worth more than blue chips such as McDonald’s Corp., Nike Inc. and Blackstone Inc.
But that size hasn’t enticed international investors, some of whom privately expressed concerns about a lack of transparency. IHC also hasn’t been included in the global MSCI index and isn’t covered by any stock analysts tracked by Bloomberg.
IHC’s financial statements receive a review that’s “substantially less in scope” than audits conducted under international standards, Ernst & Young reaffirmed in its latest report on the company’s accounts.
While Royal Group has been a sought-after client, most international banks have largely steered clear of doing deals with IHC over concerns about an inflated market value, people familiar with the discussions said. The company, which almost exclusively relies on local financing, trades at almost 18 times its book value, compared with a ratio of about 1.5 for Warren Buffett’s Berkshire Hathaway Inc.
Sounds like a bubble waiting to pop?
Source: Bloomberg - Are you a robot?
It’s worth more than blue chips such as McDonald’s Corp., Nike Inc. and Blackstone Inc.
But that size hasn’t enticed international investors, some of whom privately expressed concerns about a lack of transparency. IHC also hasn’t been included in the global MSCI index and isn’t covered by any stock analysts tracked by Bloomberg.
IHC’s financial statements receive a review that’s “substantially less in scope” than audits conducted under international standards, Ernst & Young reaffirmed in its latest report on the company’s accounts.
While Royal Group has been a sought-after client, most international banks have largely steered clear of doing deals with IHC over concerns about an inflated market value, people familiar with the discussions said. The company, which almost exclusively relies on local financing, trades at almost 18 times its book value, compared with a ratio of about 1.5 for Warren Buffett’s Berkshire Hathaway Inc.
Sounds like a bubble waiting to pop?
Source: Bloomberg - Are you a robot?
