Riyadh – Mubasher: The shareholders of Middle East Paper Company (MEPCO) agreed to increase its capital by 33.30% to SAR 666.66 million from SAR 500 million, according to a bourse filing.

The Tadawul-listed firm will capitalise SAR 166.66 million from the retained earnings account by granting one bonus share for every three owned shares.

After completing the hike transaction, the number of shares will stand at 66.66 million shares, higher by 16.66 million than 50 million shares.

The raise comes in line with MEPCO’s growth plans to strengthen its financial position.

It is worth noting that the shareholders granted their approval during the extraordinary general meeting (EGM), which was held on 24 November 2022.

Last October, the Capital Market Authority (CMA) passed the company’s capital raise following the board’s proposal in August.

In the first nine months (9M) of 2022, MEPCO generated SAR 246.81 million net profits after Zakat and tax, higher by 96.05% year-on-year (YoY) than SAR 125.89 million.