Development Works Food approves capital raise; fluctuation limit announced

Development Works Food intends to boost the company's future business activities through this capital increase

  
A Saudi trader monitors stock information at ANB Bank in Riyadh, Saudi Arabia December 15, 2020.

A Saudi trader monitors stock information at ANB Bank in Riyadh, Saudi Arabia December 15, 2020.

REUTERS/Ahmed Yosri
Riyadh – The shareholders of Development Works Food gave the green light for the board’s recommendation to increase the capital through bonus shares of one share for every five owned shares, according to a bourse disclosure on Sunday.

The company aims to raise the capital by SAR 5 million or 20% to stand at SAR 30 million distributed over 3 million shares, compared to SAR 25 million and 2.5 million shares prior to the hike.

Development Works Food intends to boost the company's future business activities through this capital increase.

The firm will capitalise SAR 1.92 million from the statutory reserve and SAR 3.07 million from retained earnings.

In a separate bourse statement, the Saudi Exchange (Tadawul) announced that the fluctuation limit of the company’s stock will be based on a share price of SAR 220.80 in line with the capital raise.

All outstanding orders will be cancelled accordingly. In addition, the Securities Depository Center (Edaa) will deposit the bonus shares into the eligible investors’ portfolios before the beginning of the trading session on Tuesday, 21 September.

Source: Mubasher

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