Almarai Company’s board of directors has proposed a share capital increase of 50 per cent, from SR4bn ($1.08bn) to S6bn, through a one-for-two bonus share issue, it announced on 29 May.

The money raised will go towards expansion in farming, manufacturing, distribution and logistics, part of the Saudi-based company’s five-year, SR15.7bn investment programme of SR15.7bn

It plans to set a date for an extraordinary general assembly meeting soon, and upon shareholder approval will issue the additional shares within 30 days after the meeting.

Following the announcements, its share price rose 5.6 per cent to SR70 at market close.