APIC Approves Stock Dividends and Corporate Bonds Amid Challenges
APIC Stock Dividend and Bond Issuance Announcement
The Arab Palestinian Investment Company (APIC) has made significant strides by approving the distribution of five million shares as stock dividends to its shareholders. This decision was reached during their ordinary and extraordinary general assembly meetings, showcasing the company's commitment to its investors even amid challenging market conditions.
Details of the Stock Dividend
During the ordinary meeting, the general assembly ratified the Board of Directors' recommendation. The five million shares to be distributed represent approximately 3.22% of the company’s current paid-in capital, which stands at USD 155 million. With this distribution, the company's authorized capital will increase to USD 160 million. The market value of these stock dividends is estimated to be around USD 9 million, offering a substantial return to shareholders.
Registration for Dividend Distribution
This stock dividend will be allocated to registered shareholders, ensuring they receive their due benefits. The proactive distribution signifies APIC's solid financial footing and confidence in its operational strategies.
Issuance of Corporate Bonds
In the extraordinary meeting, another noteworthy decision was made to issue corporate bonds valued at over USD 100 million. These bonds will be issued in three tranches, denominated in US dollars, Jordanian dinars, and euros, demonstrating APIC's commitment to diversifying funding sources while enhancing its capital structure.
Impact of Regional Developments
APIC’s CEO, Tarek Aggad, highlighted the significant challenges faced in 2024 due to ongoing conflicts and economic turmoil in Palestine. Despite these hurdles, APIC has reported total revenues of USD 1.12 billion, with a notable EBITDA of approximately USD 64.5 million. Although the company experienced a decrease in net profits to USD 8.11 million compared to the previous year, this performance underscores resilience in turbulent times.
Expanding Operations Despite Challenges
Amidst the economic difficulties, APIC continues to expand its operations. Recently, the company acquired a 51% stake in Reema Hygienic Paper Company, reinforcing its commitment to local industries and employment. This strategic move not only enhances APIC's portfolio but also contributes positively to the economy of Palestine.
About the Company
Arab Palestinian Investment Company (APIC) is a public shareholding investment company listed on the Palestine Exchange. The company holds diversified investments across various sectors such as manufacturing, trade, distribution, and services in regions including Jordan, Saudi Arabia, the United Arab Emirates, Iraq, and Turkey. With over 3,400 employees, APIC continues to play a critical role in the regional economy through its numerous subsidiaries, such as Siniora Food Industries Company and Unipal General Trading Company.
Frequently Asked Questions
What are the stock dividends announced by APIC?
APIC announced a distribution of five million shares as stock dividends, representing 3.22% of its current paid-in capital.
What is the total value of the corporate bonds issued?
The corporate bonds issued by APIC are valued at over USD 100 million and will be denominated in various currencies.
Who chairs the general assembly meetings?
The general assembly meetings are chaired by Tarek Aggad, the CEO of APIC, along with the Board of Directors and other key stakeholders.
How did regional events impact APIC's financial results?
In 2024, regional challenges reduced commercial activity, leading to a 57% decrease in net profits for APIC compared to the previous year.
What growth strategies is APIC implementing?
APIC is expanding its operations through strategic acquisitions, such as the recent 51% stake in Reema Hygienic Paper Company, to enhance its market presence.
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