Almarai Plans To Boost Capital By 50%

Saudi dairy firm Almarai wants to raise its capital by 50 per cent to six billion Saudi riyals ($1.6 billion) through the distribution of a bonus share for every two shares already held, it said in a bourse statement on Wednesday.

The plan, which it said aims to strengthen the company’s financing ability, must be approved by the markets regulator and shareholders.

Almarai’s board also approved a capital spending programme of 15.7 billion riyals over the next five years which was announced last year.

The company reported a first quarter net profit of 255 million riyals, up 5.4 per cent over the prior-year period, due to increased revenues, particularly in poultry sales.