Fitaihi recommends 50% capital cut, 2% cash dividend for H2 2020

Fitaihi Holding Group’s board of directors recommended, on March 4, 2021, a 50% capital cut from SAR 550 million to SAR 275 million on having a capital surplus, the company said in a statement on Tadawul today, March 7, 2021.

The board also recommended a 2% cash dividend at SAR 0.2 per share for the second half of 2020, amounting to SAR 11 million.

Key Figures of Capital Reduction
Current Capital	SAR 550 mln
Number of shares	55 mln shares
Reduction (%)	50%
New Capital	SAR 275 mln
New number of shares	27.5 mln shares
Capital reduction method	Writing off 50% of shares and compensating shareholders
Reduction date	The close of trading on the second day following the end of the creditor objection period

Dividend Details (H2 2020)

Current Capital

SAR 550 mln

Number of shares

55 mln

Dividend

SAR 11 mln

Percentage of capital

2% (SAR 0.2 per share)

Record date

Thursday, March 11, 2021 (Shareholders registered at Edaa on the end of second trading day following this date)

Payment date

March 31, 2021

Dividend Details (2020)

Dividend

SAR 22 mln

Percentage of capital

4% (SAR 0.4 per share)

The process will be financed by using the company’s surplus cash balances. All details will be announced in a circular to shareholders according to regulations, Fitaihi added.

There will be no significant impact of the capital reduction on the company's liabilities as it is expected to have a positive impact on Fitaihi’s performance and profitability.

The capital cut and the number of shares will be subject to approval of the EGM and the regulatory authorities.

A financial advisor for the capital cut will be appointed, the company noted, adding that the capital cut file will be submitted to the Capital Market Authority (CMA) for approval.

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Valuation Data (Latest Share Price)

P/E (TTM)	92.25
P/E Before Unusual Items (TTM)	92.25
P/BV	2.38
Dividend Yield	1.34 %
Market Cap. (M)	1,119.25
Return on Average Assets	2.50 %
Return on Average Equity	2.60 %

Fitaihi recommends 50% capital cut, 2% cash dividend for H2 2020

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