Abu Dhabi conglomerate International Holding Company (IHC) is expected to go ahead with the plan to buy back shares worth up to AED 5 billion ($1.4 billion), representing around 0.6% of the capital.

Shareholders of the company approved the buyback programme during the General Assembly Meeting on Thursday, according to a disclosure on the Abu Dhabi Securities Exchange (ADX).

The buyback, to be executed over a one-year timeframe after obtaining regulatory approvals, was proposed following IHC’s robust financial results. The buyback is intended to boost shareholder value through increased earnings per share, IHC said earlier.

“The rationale behind this decision is driven by IHC’s robust financial standing, characterised by significant cash flow and a strong balance sheet,” the company said in a previous statement.

The conglomerate’s net profit for the first quarter of the year reached AED 8 billion, rising by 87.6% from the previous year’s AED 4.3 billion.

The positive results were driven by strong performances across IHC’s core businesses in real estate and construction, technology, marine and dredging, food and services, among others, with revenues rising by 22.5% to AED 19.3 billion.

(Writing by Cleofe Maceda; editing by Seban Scaria)