Riyadh – Mubasher: The board of Thob Al Aseel Company has recommended a capital increase of 33.33% or SAR 100 million during its meeting on 14 July.

The new capital is expected to stand at SAR 400 million, compared to SAR 300 million prior to the raise, according to a bourse statement on Thursday.

Thob Al Aseel would capitalise SAR 100 million of retained earnings and statutory reserve by granting one share for every three owned shares at a total of 10 million bonus shares.

Therefore, the number of shares after the capital hike will total 10 million, instead of 30 million.

The listed firm aims to strengthen its capital to meet its business and expansion plans over the coming years while maintaining financial solvency.