Saudi cement producer Qassim Cement Co (QCC) has received approval from Saudi stock market regulator, the Capital Market Authority (CMA), to increase its capital to SAR900m (US$240m) from SAR450m, Al Watan daily reported yesterday.
The capital hike will be carried out through a one-for-one bonus issue. QCC will use retained profits and legal reserves to finance the operation, which is subject to shareholder approval. After the increase, the company’s capital will be divided into 90 million shares with a par value of SAR 10.
QCC registered a decline in its net profit for the first half of 2009 to SAR 299.7m from SAR312.2m a year ago.