Riyadh – Mubasher: The board of National Shipping Company of Saudi Arabia (Bahri) proposed to increase the capital by 50% to SAR 7.38 billion from SAR 4.92 billion through the issuance of one bonus share for every two owned shares.
The new capital will be distributed over 738.28 million shares, compared to 492.18 million shares prior to the hike, according to a bourse filing.
In order to carry out the capital raise process, Bahri will allocate SAR 351.74 million from the statutory reserve account and SAR 2.10 billion from the retained earnings.
Subject to the extraordinary general meeting (EGM), the capital increase aligns with the Saudi firm’s growth strategy to foster its capital base and anchor its expansion plans. It also backs long-term value creation through investments in available opportunities.
In a separate bourse disclosure, the board members recommend cash dividends worth SAR 246.09 million for 2022.
The Saudi firm would pay out SAR 0.50 per share, equivalent to 5% of the share nominal value, for 492.18 million eligible shares.
Meanwhile, the distribution date for the dividends will be announced at a later time.
Last year, the net profits after Zakat and tax of Bahri reached SAR 1.04 billion, a 440.93% jump from SAR 192.43 million in 2021.