Herfy gets regulatory nod on capital rise

Herfy Food Services Co.  has obtained the approval of the Saudi market regulator, the Capital Market Authority (CMA), on its capital increase proposal, Herfy said in a statement on Tadawul.

Last month, the company’s board of directors proposed 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.

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 day of extraordinary general assembly meeting will be eligible for the capital hike.