Amlak Finance to sell 25 million treasury shares
Real estate financier agreed to the sale in a board meeting held yesterday
Amlak Finance, a Dubai-based Sharia-compliant home financier has announced that it will begin the sale of 25 million treasury shares, according to a statement on the Dubai Financial Market.
The Securities and Commodities Authority, granted Amlak the permission for a share buy-back exercise on October 9, with a view to resell them within two years of the approval date.
According to the disclosure on the Dubai Financial Market, where the company's shares trade, "the board decided to start the sale of treasury shares amounting to 25 million during the period granted, taking into account the blackout periods".
According to an announcement on its website, the company reached an advanced stage of renegotiating funding terms with its financiers, which are expected to conclude before the end of this year.
Amlak's total revenue for the first nine months of this year reached Dh263mn; an increase of 11 per cent compared to Dh236mn during the same period in 2018. Revenue from its financing business activities remained stable at Dh131mn when compared to the same period last year.
The company reported a net loss of Dh41mn for the first nine months of the year, down 20 per cent year-on-year. Amlak also recorded an impairment charge of Dh74mn on its Islamic financing assets compared to Dh42mn for the same period in 2018.
Amlak's total assets stand at Dh6 billion, with its total liabilities at Dh5bn, similar to its 2018 year-end financial position.
The company’s share price almost doubled in the first two weeks of October, climbing to Dh0.58 from Dh0.30 after it announced on October 1 that it had been awarded Dh780 million in an arbitration case dating back to 2013. It has since dropped back to Dh0.47 per share, but is still up 27 per cent so far this year.
Updated: December 9, 2019 03:23 PM