Riyadh-Mubasher: The leading Saudi dairy producer Almarai said the board proposed raising capital by 33% from SAR 6 billion to SAR 8 billion, through one-for-three bonus share distribution, according to the company's statement to the Saudi bourse – Tadawul.
The top-up will be effected through capitalising SAR 2 billion from retained earnings.
The distribution eligibility will be for shareholders of record until the close of trading on the extraordinary general meeting date which will be defined later.
"The objective of this proposed capital increase is to adjust the company's share capital to its assets level, and help support its ambitious investment programme announced in 26 May 2015. This program aims at increasing the capacity expansion needs in all areas of Almarai integrated business model (farming, manufacturing, distribution and logistics), and also addresses the investments required in product renovation and innovation," the statement added.
The company will be in a stronger financial position to achieve its targeted continuous growth in all core business segments and geographic expansion.
The capital increase should raise the operational efficiency, improve the utilisation of available resources to support the company's growth and contribute to create appropriate jobs for the national manpower.
