(Reuters) - Abu Dhabi conglomerate International Holding Company on Monday said it would invest 1.4 billion dirhams ($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 faced losses of $65 billion in its companies' market value after Adani's rebuttal of a U.S. short-seller's criticism failed to pacify investors.
"Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises Ltd; 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.
IHC, Abu Dhabi's largest listed company, invested $2 billion in Adani Group companies last year, including Adani Enterprises.
Adani Group has hit back at the report by Hindenburg Research published last week that flagged concerns about Adani Group's debt levels and the use of tax havens.
Adani said it complied with all local laws and had made the necessary regulatory disclosures.
Investors' response to Hindenburg's criticisms will be tested this week by Adani Enterprises' $2.5 billion follow-on share offering which closes on Tuesday.
"The advantage of the FPO (follow-on offer) is the historical reference for the company's earnings report, company's management, business practices, and much data to bank on before making any investment decision," Shueb said in a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.
IHC spokesman Ahmad Ibrahim has said the company does not comment on other businesses' activities as a matter of policy.
Shueb said the company was "watching the international market closely for new prospects, and we will continue exploring further opportunities outside our traditional market in 2023."
The Abu Dhabi conglomerate is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE's national security adviser and a brother of the UAE's president. It has seen a meteoric rise to dominate Abu Dhabi's stock market, with two of its subsidiaries among the top four companies by valuation.
IHC is looking to boost its global acquisitions by 70% this year, with a focus on the clean energy and food processing sectors, it said.