Mubasher: Global Investment House (Global) on Thursday announced that its board of directors has approved paying KWD 7.5 million in cash distribution to shareholders through capital reduction.
Shareholders approved the reduction of authorised, issued and paid-up capital from KWD 57 million to KWD 49.5 million through canceling 75 million shares, representing 13.5% of shareholders' holdings, according to Global’s statement to Mubasher.
On conclusion of the capital reduction, the company’s capital will stand at KWD 49.5 million with adequate capital and liquidity to fund its core fee business.
“Good operating performance, excellent capital structure and highly liquid asset composition have facilitated the Board's decision to recommend this cash distribution, which comes for the second consecutive year following similar cash distribution of KWD22.9 million last year,” Sulaiman Mohammed Al-Rubaie, CEO of Global, commented.
However, the capital reduction will also improve the return on equity and book value per share, the statement said.
On a proforma basis, the book value per equity would increase from KWD0.126 to KWD 0.130.
“With healthy liquidity and no debt, Global remains one of the few companies in the regional financial sector that truly have a clean balance sheet,” Al-Rubaie added.