Tunisian Automobile Company (STA) Announces Distribution of 70% of 2024 Net Profit as Dividend
The Tunisian Automobile Company (STA) announced yesterday that, following the press release published on May 14, 2025, regarding the proposal of its Board of Directors, which met on May 10, 2025, to distribute a dividend of 0.250 TND per share for the 2024, it will convene another Board of Directors meeting to propose to the Ordinary General Meeting, scheduled for May 29, 2025, the distribution of a dividend representing 70% of the net profit, in accordance with the engagements made in the framework of the company's initial public offering (IPO) prospectus in 2022.
Recap: STA Achieves Net Profit of 5,823 Million TND in 2024
As a reminder, the automotive dealer achieved a net profit of 5,823 million TND in 2024. Given that the capital consists of 2,000,000 shares, this would lead to a dividend of at least 2,000 TND per share. In terms of dividend yield, this represents a net yield of 7.38%, among the highest currently on the market. The stock is expected to benefit from a positive trend this morning. The Financial Market Council had suspended the listing of STA's shares yesterday and authorized its resumption today following the publication of the press release.
New Shareholders Kilani Holding Aim to Recover Part of the Treasury Spent on Acquiring STA
Moreover, we believe that the new shareholders, Kilani Holding, want to recover part of the treasury spent on acquiring the company, while gaining the confidence of investors. The initiative benefits all stakeholders.
STA's Move Sets a Precedent for Future IPOs
This initiative should make companies going public think twice about the method to follow for their IPO. The era of making commitments in prospectuses only to disregard them seems to be over. It is clear that the regulator intends to impose rigor on the market and no longer allow disrespect to investors. From now on, it is better to let the market value the stock and opt for book building rather than valuations based on a business plan that is rarely achieved.
