Lazurde shareholders to discuss capital increase to SAR 575 mln on June 2

Logo of Lazurde Company for Jewelry

Lazurde Company for Jewelry's shareholders are set to vote on the board's recommendation on increasing capital from SAR 430 million to SAR 575 million through offering 14.5 million rights issue shares, during the extraordinary general meeting that will be held on June 2, 2021.

The company said in a bourse statement that the capital hike aims to increase its profit through reducing and repaying credit facilities, which will in turn lower the firm's financing charges. In addition, the move aims to diversify revenue through implementing the strategy of transforming to growth and expansion in the field of selling gold artifacts, through the two brands - Miss L and L'azurde Instyle in Saudi Arabia and Egypt.

The Tadawul-listed company also seeks to expand the retail segment, open new stores, and develop e-commerce platforms, which have witnessed rapid growth. The firm also strengthened its presence in the regional market and seeks to foray into the leading markets.

During the meeting, shareholders will also review the board and auditor reports as well as financial statements for 2020. They will also discuss appointing an auditor and mandating the board to distribute interim dividend on a semi-annual or quarterly basis for 2021.

Lazurde implemented the development initiatives and strategies based on a four-level approach focusing increasingly on the fashionable jewelry segment, expanding the retail channels, improving the profitability of the wholesale sector, and focusing on the development of e-commerce which grows rapidly with high profitability.

The company turned to a net profit of SAR 10.2 million during the first quarter of 2021.