RIYADH: Saudi L’Azurde shareholders will vote today on the board’s recommendation on increasing capital from SR430 million ($115 million) to SR575 million, through a rights issue.
The decision to raise capital comes despite positive cash flows, as the company plans to invest in developing low-cost gold jewelry, a segment that is developing more rapidly than luxury jewelry, CEO Selim Chidiac told Al Arabiya.
L’Azurde will also invest in its retail presence in Saudi Arabia and Egypt, and develop its e-commerce capabilities, which currently constitute 10 percent of the company’s revenues and could reach reach 20 percent next year, he said.
The company will use part of the capital to reduce its cost of finance and increase profitability, he said.
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