Ataa distributes dividend up to 50% of its annual earnings: CEO

Ataa Educational Co.’s policy stipulates that the company distributes cash dividend representing 40 to 50% of the annual net profit, chief executive officer Ibrahim Abdulkarim Al-Turki told Argaam in an exclusive interview.

The company’s share accounts for 10% of Riyadh market with over 27,000 students and varying curricula including Saudi, American, English, Indian, French and Egyptian curricula, the CEO added.

Commenting on the company’s 2 prospective acquisitions, Al-Turki said that results and decisions related to Al Falah Schools deal will be announced soon, while the Kingdom Schools deal needs more time to complete the required studies and procedures necessary for such deals.

“The company has a proven track record of successful acquisitions; we will work hard to continue this fruitful policy and any development will be announced in due course,” he noted.

Ataa’s indebtedness is ideal and acceptable for creditors, he said, adding that it has several bank financing offers but will not proceed with any unless there is a need or an investment opportunity.

Al-Turki stated that the Saudi-listed firm conducts annual benchmarking studies related school tuitions, noting that it did not increase 2019 tuitions despite the approval of the Ministry of Education.

Ataa CEO expressed his optimism about the future of education sector in the Kingdom, stressing that it is one of the promising and attractive sectors for local and international investors.

He further explained that Saudi educational companies are seen as promising investment opportunities on the short and long terms, with a particular focus on supporting private education to account for 25% of the sector’s share in the upcoming 3 years.