Almarai plans bonus issue to boost capital by 50%

Board also approves capital spending programme of 15.7bn riyals over the next five years

Saudi dairy firm Almarai wants to raise its capital by 50 percent to 6 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 percent over the prior-year period, due to increased revenues, particularly in poultry sales.

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