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Saudi’s Al Tayyar Travel To Hike Capital 33% To Support Growth

Saudi’s Al Tayyar Travel To Hike Capital 33% To Support Growth

The company will increase its capital to SAR2 billion by issuing one bonus share for every three shares held.

Saudi Arabia’s Al Tayyar Travel Group said on Thursday its shareholders agreed to raise its capital by 33.3 percent via bonus shares to help fund its expansion plans.

The company will increase its capital to SAR2 billion ($533.3 million) by issuing one bonus share for every three shares held, paid for by capitalising SAR500 million of retained earnings, it said in a bourse filing.

No money is being raised from shareholders, who are getting the new shares for free, but the move is an accounting device which in effect boosts the bank’s equity and therefore supports future growth.

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