Nofoth shareholders OK 10-for-1 stock split, 20% cash dividend for 2022

Logo of Nofoth Food Products Co.

Nofoth Food Products Co.’s shareholders approved the board recommendation to reduce the stock’s nominal value from SAR 10 to SAR 1, during the extraordinary general meeting (EGM) held on June 19.

The capital will remain unchanged after the stock split process, the company said in a statement on the Saudi Exchange (Tadawul).

The decision shall apply to the stock price starting from the working day following the EGM. This is provided that the number of shares in shareholders' portfolios will take effect by the end of the second trading day following the EGM.

Moreover, shareholders approved a 20% cash dividend, or SAR 2 per share, for 2022, as shown below:

Shareholders also authorized the board to distribute interim dividend to on a semi-annual or quarterly basis for the fiscal year 2023.

They agreed to transfer the statutory reserve balance amounting to SAR 5.88 million, set forth in the financial statements for the year ending on December 31, 2022, to retained earnings.

In a separate statement, Tadawul announced that the fluctuation rate will be calculated based on a share price of SAR 16.82 for today, June 20, and any outstanding orders shall be cancelled.

Edaa will add the respective split shares to shareholders’ portfolios prior to start of trading on June 22, the statement noted.