Riyadh – Mubasher: Fad International Company said its shareholders approved a cash dividend distribution of SAR 6 million for the fiscal year ended on 31 December 2025, according to a bourse filing.
The Ordinary General Assembly meeting also saw the ratification of the Board of Directors' report, the appointment of Ernst & Young (EY) as external auditors, and the approval of several related-party transactions.
A primary highlight of the meeting, which took place on 16 June 2026, was the approval of the board’s recommendation to distribute cash dividends representing 50% of the company’s capital and translating to SAR 5 per share.
Eligibility for these dividends is set for shareholders owning stock at the close of trading on the day of the assembly, with the actual disbursement scheduled to begin on 25 June 2026.
The Securities Depository Center (Edaa) will manage the transfer of funds directly to the investment portfolios linked to shareholders' bank accounts.
In addition to the dividend approval, shareholders voted to appoint Ernst & Young Professional Services as the company’s external auditor. The firm will be responsible for reviewing and auditing the interim financial statements for the first half (H1) of 2026 and the annual financial statements for the 2026 fiscal year. The agreed-upon professional fees for these services amount to SAR 588,336.
The assembly also addressed board remuneration and governance. Shareholders approved a total payment of SAR 913,120 as bonuses for board members for the 2025 fiscal year and discharged the board members from liability for the same period.
Furthermore, the board was granted authorization to distribute interim dividends on a semi-annual or quarterly basis for the 2026 fiscal year, providing the company with greater flexibility in managing shareholder returns.
Transparency regarding related-party transactions was a significant component of the agenda. Shareholders ratified contracts between Fad International and Femi9 Bahrain, involving clothing sales totaling SAR 998,603 in 2025.
Additionally, transactions with Fad China, involving expenses incurred on behalf of the company amounting to SAR 3.21 million were approved. Both sets of transactions involve indirect interests held by Managing Director Iyad Abdullah Sulaiman Mashat.
The company emphasized that these dealings are conducted within the normal course of business, following prevailing commercial terms without preferential conditions.
Fad International concluded its disclosure by reminding non-resident foreign investors that cash dividends transferred through resident financial intermediaries are subject to a 5% withholding tax in accordance with Saudi tax regulations.
Shareholders were encouraged to update their banking data to ensure the seamless receipt of dividend payments.
Earlier in 2026, the listed company announced the reorganization of its board of directors following the resignation of Mohammed Abdulrahman Momenah from his position as the Chairman.
