GFH Financial Group Boosts Treasury Shares: A Strategic Move Towards Future Growth

GFH Financial Group B.S.C. announces a significant acquisition of its own shares, strengthening its market position and opening new opportunities for growth.

GFH Financial Group Boosts Treasury Shares: A Strategic Move Towards Future Growth

Summary

GFH Financial Group has increased its treasury shares, a move that could signal a strategic plan for future growth and expansion. The acquisition represents an optimistic outlook for the company's future.

GFH Financial Group B.S.C., a leading financial group in the GCC region, has recently announced the acquisition of 28,556,375 of its own shares, boosting its treasury shares from 6.26% to 7.01% of total issued shares. This strategic move, approved by the authority in March 2024, signifies the company's robust financial position and its readiness to leverage opportunities for growth and expansion.

Established in 1999, GFH has built a strong reputation in the financial industry with its innovative approach to Islamic investment banking services. The company's diverse offerings and pioneering track record in Investment Management, Commercial Banking, and Treasury & Proprietary Investments have been recognized internationally for over a decade. With strategic investments across the GCC, US, Europe, and UK, GFH continues to demonstrate its commitment to growth and value creation for its stakeholders.

The acquisition of its own shares is a common strategy used by companies to manage their capital structure and enhance shareholder value. By buying back its own shares, GFH has effectively reduced the number of shares outstanding, which could potentially increase the earnings per share and return on equity - two key indicators of a company's profitability.

The average purchase price for the acquired shares was USD 2980, representing 0.745% of the issued capital. This decision, taken in a board meeting in September 2021, is a clear indication of the company's confidence in its financial health and future prospects.

Given the company's strong market position, diversified offerings, and strategic investments, it is reasonable to expect that GFH will continue to deliver solid financial performance and generate attractive returns for its shareholders in the future. Therefore, for investors looking for a robust and growth-oriented financial group, GFH presents an attractive investment opportunity.

Source

Post share buyback announcement

Summary

GFH Financial Group has announced the acquisition of 28,556,375 of its own shares (treasury shares). This purchase increases the total holding of treasury shares from 240,009,090 (6.26% of total issued shares) to 268,565,465 (7.01% of total issued shares) as of 26th March 2024. The decision to purchase was taken in a board meeting in September 2021 and approved by the authority in March 2024. The average purchase price was USD 2980. The purchased shares represent 0.745% of the issued capital.

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