Riyadh – Mubasher: The board members of Scientific & Medical Equipment House Company recommended increasing the capital to SAR 300 million from SAR 200 million by offering one bonus share for every two shares.

The Saudi firm will allocate SAR 100 million from the retained earnings account in order to carry out the capital raise, according to a bourse filing.

Following the transaction, the number of shares will stand at 30 million shares, instead of 20 million.

The board proposed the 50% capital hike, on 11 June, to boost the company’s strategic growth plans and anchor its financial solvency.

Meanwhile, the proposal is still subject to the approval of the extraordinary general meeting (EGM) of Scientific & Medical Equipment House.

The Tadawul-listed firm was recently awarded a SAR 23.72 million project contract from the Saudi Ministry of Education.