September 11, 2013

Saudi Arabia's Almarai gets approval for 50% capital hike

Saudi Arabia's dairy firm Almarai has received shareholders' approval to increase its capital by 50% to SAR6 billion (US$1.60 billion).

The company will increase the number of shares to 600 million from 400 million by issuing one bonus share for every two outstanding shares which has a nominal value of SAR10 (US$2.67) per share.

The company said that the increase will support its SAR15.7 billion (US$4.2 billion) five-year capital funding programme.

Almarai last week instructed four banks to arrange the sale of a SAR1.7 billion (US$453 million) Islamic hybrid bond, or sukuk.