The Egyptian Stock Exchange has announced that the cash distribution right for Tawassul for Factoring, which amounts to 7.1 piasters per share, will end at the close of trading on May 4. This announcement is part of the company's efforts to enhance its shareholders' returns, with the distribution of coupon number (3) scheduled to begin on May 7.
In a related context, the ordinary general assembly of Tawassul for Factoring approved the profit distribution plan for the last financial year, which totaled 6.6 million Egyptian pounds. The board of directors' report and the company's financial statements for the fiscal year ending on December 31, 2025 were also ratified.
Details of the Event
The general assembly decided to distribute profits to shareholders amounting to 5.350 million Egyptian pounds, in addition to carrying forward 6.296 million Egyptian pounds to the next financial year. The assembly also discharged the board members for the financial year that has ended.
The general assembly has authorized the managing director, Samir Jihad Sami Dawood, to implement the profit distribution plan in coordination with Misr for Clearing, Settlement and Central Depository and the Egyptian Stock Exchange, to determine the coupon payment dates.
Background & Context
At the end of March, the right to subscribe to the capital increase of Tawassul for Factoring ended, raising the capital from 75 million Egyptian pounds to 115 million Egyptian pounds. 40 million Egyptian pounds of the increase was allocated to 40 million shares at a nominal value of one pound per share, with the possibility of subscribing through Banque Misr without issuance fees.
The subscription window opened on March 30 and is set to close on April 19, with the possibility of closing early if the full amount is covered. Shareholders have the right to trade the subscription right separately from the original share during the specified period.
Impact & Consequences
Tawassul for Factoring has received preliminary approval from the Financial Regulatory Authority to publish an invitation for existing shareholders to subscribe to the capital increase, reflecting confidence in the company's business model and growth plans. Hossam Sediqi, the Chief Operating Officer, confirmed that this step represents an important milestone in the company's journey.
The capital increase aims to support expansion plans and enhance financing capacity, with approximately 2 million Egyptian pounds directed towards geographical expansion, while the majority of the proceeds, around 38 million Egyptian pounds, will be used to support working capital and the company's core activities.
Regional Significance
These steps are part of Tawassul for Factoring's strategy to strengthen its position in the Egyptian factoring market, contributing to improved financial solvency and equity indicators. This increase will also help address economic fluctuations and enhance the customer base.
In conclusion, Tawassul for Factoring aims to achieve sustainable growth through the implementation of well-considered strategies, thereby boosting investor confidence and reflecting its position in the market.