Riyadh – Mubasher: The board members of Sumou Real Estate Company proposed a capital hike by transferring an amount of SAR 125 million from the retained earnings account.
Under the board’s recommendation, which was decided on 21 March 2024, the Saudi firm will grant one bonus share for every three shares, according to a bourse filing.
The new capital will stand at SAR 500 million distributed over 50 million shares, compared to SAR 375 million and 37.50 million shares, prior to the raise transaction.
The 33.33% capital increase aims to back and strengthen the company’s capital base and future activities, which will contribute to achieving the targeted growth rates during the coming years.
Meanwhile, the board’s proposal is subject to obtaining necessary approvals from official authorities and an extraordinary general assembly meeting.
In 2023, Sumou Real Estate achieved net profits valued at SAR 103 million, an annual rise of 17.54% from SAR 87.63 million.
As of 30 September 2023, the Tadawul-listed firm posted an 8.78% higher net profit after Zakat and tax at SAR 78.23 million, compared to SAR 71.91 million a year earlier.
