Al Othaim Investment increases capital to SAR 1.5 bln through 50% bonus issue, pays SAR 2/share dividend

Al Othaim Investment CEO Meshaal bin Omairh

Abdullah Al Othaim Investment Co. (AOIC) decided to increase capital to SAR 1.5 billion through a 50% bonus share distribution (one-for-two bonus shares).

The company also approved a 20% cash dividend at SAR 2 per share, totaling SAR 200 million, from retained earnings.

In a statement, of which Argaam picked a copy, the company said it posted a net profit of SAR 220 million for the first nine months of 2022, a year-on-year (YoY) rise of 37%. Total revenue also grew 14% YoY to SAR 695 million.

Profit margins rose 24% YoY to SAR 354 million, driven by revenue growth on stable performance and improved operating segments that include malls, entertainment and fashion retail, as well as entertainment businesses in Egypt, the UAE, Qatar, Oman and Bahrain.

CEO Meshaal bin Omairh said that the company's capital increase decision came within the framework of its expansion strategy, which aims to open 20 new malls across the Kingdom. This is besides plans to expand investment activities, further diversify and seize stimulating investment opportunities.

He added that the company opened three new malls through the acquisition of Al Othaim Mall Ar Rass, and the opening of Al Othaim Mall Hafr Al-Batin and Al Othaim Mall Al-Khafji.

This brought the total number of the company’s malls to 12 in Riyadh (Al-Rabwa and Khurais), Dammam, Al-Ahsa, Buraydah, Unaizah, Ar Rass, Hail, Arar, Hafr Al-Batin and Al-Khafji. Further, it fully acquired the partial lease of Al Othaim Mall Rabwa Riyadh’s land, and entered into agreements to buy more than 105,000 square meters of land in Madinah. It also continues planning to add many malls in new cities.

AOIC was established in 2005. Its core activities include the establishment, operation and management of shopping malls. The company currently owns 12 malls. Abdullah Al Othaim Leisure Co., Abdullah Al Othaim Fashion Co. and Abdullah Al Othaim Foods Co. are AOIC’s subsidiaries.

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