Al-Modawat says to maintain semi-annual dividend policy

Logo of Al-Modawat Specialized Medical Co. 

Al-Modawat Specialized Medical Co. said it intends to maintain a policy to distribute fixed cash dividends to its shareholders semi-annually. 

During the first half of 2023, the company distributed about SAR 4.8 million dividends, representing nearly 44% of its net profit. 

The company is preparing to offer 475,000 ordinary shares, representing 20% ​​of its share capital, on the Nomu-Parallel Market. The book-building process for qualified investors will run from today, Jan. 28, until Feb. 5. 

Al-Modawat explained that its strategy includes enhancing operational performance across all hospital departments, establishing specialized medical departments to broaden the scope of healthcare services, and investing in the hospital’s infrastructure to improve operational efficiency.

The company intends to utilize 6% of the net offering proceeds to purchase an operational asset (an MRI machine), while the remaining 94% will be used to finance specific working capital items in operational processes.

The medical services provider will not repay any debts from the net offering proceeds.

The following table shows the company’s plan to use the net offering proceeds allocated to operational items:

*Falls within the cost of revenue items.