The board of directors of Jarir Marketing Company recommended increasing the company’s capital by 50 percent through bonus shares at its extraordinary general assembly meeting held in Riyadh recently.

The capital increase is to be carried out through bonus shares by increasing the company’s capital from SR600 million to SR900 million, an increase by 50 percent.

The 60 million shares will become 90 million after the capital increase.

The company will offer one bonus share for every 2 shares owned.

The capital increase of SR300,000,000 will be met thus: SR108,281,000 to be transferred from the statutory reserve, as in the financial statements for the period ended Dec. 31, 2012, and SR191,719,000 to be transferred from the retained earnings, as in the financial statements ended Dec. 31, 2012.

Eligible for the bonus shares are the shareholders who are registered in the shareholder’s register in the Securities Depository Center (Tadawul) at the close of trading on the extraordinary general assembly day Wednesday (Nov. 27, 2013).

With the capital increase, the company aims to cope up with the current and future expansion of Jarir branches within and outside Saudi Arabia.

The board also gave its approval to the amendment of Article 7 of company bylaws for the capital increase; the capital of the company has been fixed at SR900,000,000 divided into 90,000,000 shares of equal value with the par value of SR10 per share, all of which will be ordinary nominal shares representing the company’s capital paid at the time of conversion.

It approved the amendment of the 1/B/3 part of Article 16 of company bylaws regarding release vested in the board and cannot be delegated to be replaced.

Also, the board approved the amendment of the part 5 of Article 17 of company bylaws, which envisages that its minutes should be signed by all board members.