Riyadh – Mubasher: The board of Nayifat Finance Company suggested to increase the capital by 20% through the issuance of one bonus share for every five existing shares, according to a bourse filing.

Following the raise, the new capital will stand at SAR 1.20 billion distributed over 120 million shares, compared to SAR 1 billion and 100 million shares.

The firm will allocate SAR 169.70 million from the retained earnings account and SAR 30.30 million from the statutory reserve account to implement the capital hike transaction.

In line with its future plans, Nayifat will use the proceeds of the raise to foster its capital base and back the coming activities to achieve growth rates in different investments.

The Central Bank of Saudi Arabia (SAMA) greenlighted the capital increase on 29 November 2022.

During the first nine months (9M) of 2022, the company’s net profits after Zakat and tax plummeted by 22.08% to SAR 135.30 million, versus SAR 173.64 million in the January-September 2021 period.

Revenues inched down by 0.04% to SAR 293.61 million in 9M-22 from SAR 293.72 million in 9M-21, whereas the earnings per share (EPS) declined to SAR 1.35 from SAR 1.74.