Herfy board proposes 40% capital hike via bonus shares

Herfy Food Services Co.’s board of directors proposed on Monday raising the company’s capital by 40 percent to SAR 646.8 million, from SAR 462 million, through the issue of two bonus shares for every five shares held.

The number of shares will be increased to 64.68 million, Herfy said in a statement on Tadawul.

The company will use SAR 64.8 million from its retained earnings and SAR 120 million from statutory reserves to fund the capital increase, which will help finance future expansions.

Shareholders of record in the Securities Depository Center on the extraordinary general assembly meeting date will be eligible for the capital hike.

Fractional shares will be accumulated in one portfolio and will be sold at market price within 30 days from the allotment process.

The capital hike is subject to the approval of the regulatory authorities and the extraordinary general assembly meeti