Riyadh, Saudi Arabia — Food Gate Company shareholders have approved both cash dividends and bonus shares for the fiscal year 2024. The Food Gate dividends and bonus shares package aims to enhance shareholder returns and fund future expansion projects.
The company will distribute SAR 2.1 million in dividends, equal to SAR 1 per share, representing 10% of the share’s nominal value.
Eligibility applies to shareholders who hold shares at the close of trading on the General Assembly meeting day. They must also be listed in the Edaa shareholder registry by the end of the second trading day after that.
Dividend payments will begin on Sunday, July 6, 2025.
Capital Increase and Shareholder Details
Shareholders also approved a 50% capital increase through free share issuance. Each shareholder will receive one bonus share for every two shares owned. As a result, the company’s capital will rise from SAR 21 million to SAR 31.5 million.
This increase will be funded by capitalizing SAR 10.5 million from retained earnings, which stood at SAR 26.56 million as of December 31, 2024.
Food Gate stated that the capital boost will support operational expansion and investment projects. It also enhances efficiency and strengthens the company’s ability to achieve long-term growth.
The entitlement date for bonus shares matches the General Assembly meeting date. Eligible shareholders will be registered at the Securities Depository Center (Edaa) by the end of the second trading day following the entitlement date.
Fractional shares will be combined into one portfolio. These will be sold at market price, and the proceeds will be distributed to eligible shareholders within 30 days.
In addition, shareholders approved transferring SAR 4.94 million from statutory reserves to retained earnings.
The Saudi Standard’s View: Steady Shareholder Value Through Food Gate Dividends and Bonus Shares
The approved Food Gate dividends and bonus shares reflect a stable approach to shareholder value. The cash payout demonstrates solid financial results, while bonus shares indicate long-term confidence in expansion.
Using retained earnings to fund growth follows a growing trend among Saudi-listed companies. This method allows firms to pursue strategic projects while rewarding shareholders and enhancing market liquidity.
Food Gate’s capital increase and dividend distribution align with Saudi Arabia’s broader market development. The company’s focus on immediate payouts and sustainable expansion showcases a balanced growth strategy.
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