RAMALLAH, Palestine, May 16, 2024 /PRNewswire/ -- Arab Palestinian Investment Company (APIC) convened its ordinary general assembly on Wednesday, May 15, 2024, in Ramallah, Palestine. The meeting, which was chaired by APIC Chairman and CEO Tarek Aggad, was attended by members of APIC's Board of Directors, representatives from the Ministry of National Economy, the Palestine Capital Market Authority, the external auditor of the company, its legal counsel and many of its shareholders.
In its meeting, the general assembly ratified the recommendation of APIC's Board of Directors to distribute stock dividends totaling eight million shares, representing approximately 6.84% of the current paid-in capital of USD 117 million, thus increasing the paid-in capital to be equal to the authorized capital of USD 125 million. The stock dividends, which will be distributed to registered shareholders on May 14, 2024, hold a market value of around USD 20 million.
In his remarks at the meeting, Aggad explained the unprecedented political and economic challenges in Palestine because of the war on Gaza, and worldwide due to the major hike in financing costs, the increase in the cost of raw material, shipping, storage, and energy, in addition to the sharp decline in the value of the shekel against the US dollar. Despite these hurdles, Aggad emphasized the company's resilience and commitment to excellence, citing significant achievements in 2023. Total revenues reached USD 1.2 billion, EBITDA totaled around USD 73 million, a decline of 6.5% versus 2022. Net profits amounted to USD 19 million, while net profits attributed to APIC shareholders amounted to USD 17.7 million.
Aggad expressed his genuine concerns regarding Palestine's economic outlook amidst the ongoing war on Gaza and the occupation's extensive destructive approach. He anticipated adverse repercussions on the Palestinian economy and the results of companies in 2024, foreseeing a significant decline in the gross domestic product (GDP) due to the comprehensive siege on Gaza and the destruction of infrastructure, the withholding of tax revenues to the Palestinian Authority, in addition to the restrictions imposed on imports, exports, and the movement of people and goods in the West Bank. He added that the nebulous boundaries of this crisis and its dire ramifications on the Palestinian economy will impede and confine any endeavors to revitalize the economy, which in turn will have a negative effect on APIC group, as an integral part of this economy.
About APIC
APIC is a foreign public shareholding investment holding company listed on the Palestine Exchange (PEX: APIC). It holds diversified investments across the manufacturing, trade, distribution and service sectors in Palestine, Jordan, Saudi Arabia, the United Arab Emirates, Iraq and Turkey through its group of subsidiaries: Siniora Food Industries Company; Unipal General Trading Company; Palestine Automobile Company; Medical Supplies and Services Company; National Aluminum and Profiles Company (NAPCO); Sky Advertising and Public Relations and Event Management Company; Arab Leasing Company and Arab Palestinian Storage and Cooling Company, employing over 3,150 staff through its group of subsidiaries. For more information, visit www.apic.ps
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