Global Investment House “Global” announced that it has recorded a net profit of KD42 million (USD143 million) for the nine months ending September 30 2005, which translates into an EPS of 163 fils, compared to 55 fils for the same period last year, whereas the total revenue for the period stood at KD53 million (USD180 million)
Mr. Anwar Abdulla Al-Nouri, Chairman of the Board, said that the nine months period has witnessed pivotal achievements in the history of Global one of which is the assets under management crossing the KD1.4 billion (USD5 billion) threshold at the end of last August, then reaching KD1.7 billion (USD5.9 billion) by the end of September 2005. Other major events included listing Global on Dubai Financial Market, buying a major stake in a Jordanian mobile communications company.
“The increase of the assets under management to USD5.9 billion is a result of smart investments and is an indicator of our clients’ trust in Global abilities and various investment products. It is also a strong indicator to the management and employees solid commitment to the highest, international work and investment standards, and the fruit of extensive research, acute planning and execution, in addition to a never ending commitment to prominence in everything we do,” he added.
Global has proved that it is a pioneer in asset management, with a strong track record. Most of these funds and portfolio managers by Global have delivered exceptional performance that exceeded relevant market indicators.
In this regard, Mr. Al-Nouri pointed to Global Al-Ma'amoun Fund, which last June completed its fourth positive year with profits reaching KD21.4 million, translating into a return of 35.27%. Furthermore, Global US Real Estate Fund distributed 7.2% cash dividends to its investors, shortly after closing its first two real estate deals.
As for company’s strategic achievements during this quarter, the Chairman said that Global listed its stocks on the Dubai Financial Market, and acquired a major stake in a Jordanian mobile communications company.
“On Monday September 19, 2005, and with an innovative step and a first ever in the region, a bell rang to announce the start of trading Global shares on DFM.” “Global’s listing on the DFM follows its successful listing on the Kuwait Stock Exchange in May 2003 and the Bahrain Stock Exchange in October 2004. This listing is a continuation of the company’s expansion strategy in the Gulf and the wider Arab region,” he affirmed.
Reaching across the region, Global entered the Jordanian telecommunications industry in a buy-in of a 30% stake in Umniah Mobile Company, the third and latest mobile operator in the Hashemite Kingdom. Umniah started its services last June to provide an array of unique services and promotions to its subscribers through an advanced telecommunication network.
Mr. Al-Nouri said that on the corporate finance level the company had lead managed three issues worth KD100 million for Alargan International Real Estate Company, Future Kid Entertainment, and First Qatar Real Estate Development Company.
He elaborated by saying that Global acted as the Lead Manager in the private placement of 175 million shares of Alargan International Real Estate Company, KSCC (Alargan) at the price of 210 fils per share. The company also managed the reverse merger (Management Buy-in) of Future Kid Entertainment and Real Estate Company KSCC to acquire Future Kid for Toys and Games Co. WLL. The move required raising the existing capital from KD100,000 to KD8.7 million through a fresh issue of 86 million shares at 157.5 fils per share.
During the quarter, Global managed the private placement for First Qatar Real Estate Development Company, a closed Kuwaiti shareholding company. The issue aimed to increase the company’s paid-up capital from KD1 million to KD50 million through the issuance of 490 million shares at 105 fils per share. First Qatar already has secured four plots in different districts within the Pearl-Qatar project.
“Furthermore, on July 18th, 2005, Global signed an agreement with Housing Finance Company KSCC (ISKAN) to act as the lead manager for a KD25 million, two-tranches, five years bond issue. The bond issue was to fulfill ISKAN’s desire to retain cash liquidity to achieve its strategic goals,” Mr. Al-Nouri stated.
Global acted as a lead manager and a listing advisor for Tijara & Real Estate Company (Tijara) which started trading on Monday September 26th, 2005. The company managed a private placement for Tijara in order to comply with listing requirements. Global evaluated the company and sold 30 million shares at 220 fils/share. Tijara shares first trade commenced at 295 fils/share.
On the other hand, to affirm its leadership as a reliable source for economic and financial information in Kuwait and the region, Global launched Bahrain Stock Exchange indices, to become part of Global’s series of indices, which includes Global Indices for Kuwait and Qatar stock exchanges. The new indices leverage the need to track the performance of Bahraini stocks.
At the end, Mr. AlNouri thanked Global’s clients and shareholders for their valuable trust and continuous support. He extended his gratitude to the company’s management and staff for their great efforts to benefit the shareholders wishing all a blessed month of Ramadan.
