Saudi Arabia’s Naba Alsaha Medical Services has secured the approval from the Capital Market Authority (CMA) to increase its capital by around 40%.

The healthcare provider seeks to raise its capital from 70 million Saudi riyals ($18.6 million) to 105 million Saudi riyals ($28 million) through the issuance of one bonus share for every two existing shares owned by the shareholders.

The increase will be paid by transferring SAR35 million from retained earnings to the company’s capital. The capital hike will consequently increase the company’s outstanding shares from 7 million to 10.5 million.

The move is meant to support and finance the company’s new expansion projects.

(Writing by Cleofe Maceda; editing by Seban Scaria)