Riyadh – Mubasher: Halwani Bros Co announced that its board of directors recommended raising the company’s capital by 10% through bonus shares.

The Saudi food provider will increase the number of its shares to 31.43 million shares from 28.57 million, raising the capital to SAR 314.29 million, compared to SAR 285.71 million, the company said in a statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The capital raise will be carried out by offering one bonus share for every 10 owned shares through capitalising SAR 28.57 million from the retained earnings.

Eligibility for these bonus shares will be for shareholders owning shares at the close of the trading day of the company’s extraordinary general meeting (EGM) date which will be determined in the near future and those registered in the shareholder's register of the company in the Securities Depository Center at the close of the second trading day after the date of the EGM meeting day.  

For the full-year 2018, the Saudi food provider’s net profits, after zakat and taxes, declined 39.3% year-on-year to SAR 43.3 million, compared to SAR 71.3 million in the prior year.

By 03:10 pm Saudi time on Sunday, Halwani Bros’ stock fell 2.30% to SAR 44.65.