Global Investment House “Global” Annual General Management (AGM) and Extraordinary General Management (EGM) gave its approval today for the proposed dividends comprised of 70% cash, 100% stocks, and a 50% capital increase.
The approval came during the AGM annual meeting, with 87.51 % of the company’s shareholders in attendance, as well as representatives of the Ministry of Commerce and Industry, Kuwait Stock Exchange, auditors Al-Aiban and Al-Osaimi – Ernst & Young and Co., and Anwar Al-Qatami & CO. – Grant Thornton.
The meeting commenced with a presentation of the Board of Directors’ report by the Chairman Mr. Anwar A. Al-Nouri, in which he praised Global’s great achievements and results during 2005. He stated that Global has seized the opportunities the booming local and regional economies had presented in the past year, while adhering to the highest international professional and ethical standards.
He said, “The company’s assets under management grew significantly, reaching over KD1.8 billion (USD6.2 billion) by the end of December 2005.” This is due to “well planned investments, supported by our clients’ trust along with that of our regional and international partners.”
“Taking advantage of all these circumstances, Global continued to grow keeping in mind its aim of being the preferred investment bank in the Middle East while strictly adhering to its core values of trust, ethical approach, quality, commitment, creativity, innovation and providing world class products and services.” He continued.
He affirmed that the aim of the capital increase is to fuel the company’s expansion strategy and to introduce new investment products and services that fulfill the ever growing and changing capital market demand in Kuwait and the region. In addition, it is used to finance Global’s direct investment whether in its own products or that of others.
Afterwards, Mrs. Maha K. Al-Ghunaim, Vice Chairman & Managing Director, presented the Executive Management report in which she expressed her pride in the company’s ability to implement its plan set in 1998 and exceeding the targets set for 2005.
“2005 was a very challenging year for Global, despite the continued robust performance of the capital markets during the year. I’m proud to say that we have successfully implemented our expansion plan in the region and over-achieved the target we had set for ourselves for the year,” she said.
She pointed that the 80% increase in assets under management was the result of new investments coming from new and existing clients, and the appreciation of the assets Global manages in the local, regional and international markets.
Global Opportunistic Fund, the first Pre-IPO fund in the GCC, was launched to capitalize on equity and equity-related IPO and Pre-IPO securities. “We were able to raise USD550 million through this fund, which makes it the biggest fund in the region,” she said.
Investment banking deals have earned Global recognition over the past years, providing clients with exceptional performance. “This year, we privately placed over KD220 million (USD753 million) for 13 various companies. On the debt side, Global managed and arranged bonds and Islamic financing issues for several corporate clients with the total amount exceeding KD243 million (USD829 million).
Global assisted in the private placement of two regional issues in the telecommunication sector during the past year. The first was for Investcom, an international wireless telecom, and the second for Telecom Egypt, Egypt’s sole provider of fixed-line voice telecommunication services. The deals are considered to be among the largest international equity offerings out of the MENA region to date.
Global continued its initiatives in expanding the regional capital markets during the year, and acted as the listing advisor for seven companies on the Kuwait Stock Exchange.
“Our efforts are well reflected in the Kuwait Stock Exchange. The market capitalization of the 18 companies we have listed over the past years reached KD2.44 billion (USD8.34 billion) as at 31 December 2005, representing almost 6% of the total market cap of the KSE.”
Global research and reports has expanded to cover new markets such as Syria, Egypt, Lebanon and Jordan, tackling these markets business sectors and companies with the same diligence, accuracy and professionalism they are famed for.
Speaking about the 2005 financial performance, Global MD described it by saying, “it was an exemplary year.” The company’s revenues during the year reached KD80.1 million (USD274 million), an increase of 174% over 2004. It recorded a net profit of KD61.5 million (USD210 million) for the year, compared to KD21 million (USD72 million) in 2004, an increase of 188%. The Earning Per Share (EPS) during the year was 235 fils, compared to 94 fils in 2004. Simultaneously, the return on equity saw an increase from 52% in 2004 to 64% in 2005.
Global has been awarded the Gulf Excellence Award, and later named “Best Equity House in Kuwait,” then as the “Best Real Estate Investment House in Kuwait” by the renowned Euromoney magazine. Global products also received international acclaim.
Eurekahedge, the world's largest independent hedge fund research company ranked Global Distressed Fund “3rd Best Hedge Fund in the World”, and as the “7th Best Hedge Fund in the World” by Barclay Group, an internationally renowned financial research institute, both based on “Sharpe Ration”.
She followed by saying that Global has managed to reach its leading position due, in no small measure, to the hard work and dedication put in by its highly qualified and experienced staff. By the end of 2005, the Global staff increased to 292, in order to drive the strategy of the company to expand geographically and to offer more products and services in the market.
In the end, Mr. Al-Nouri and Mrs. Al-Ghunaim thanked the Board Members and all Global’s employees and shareholders for their efforts and support.
