Red Sea Housing makes 50% increase in share capital

08/02/2014 08:41 AST

The board of directors of Red Sea Housing Services Co., a publicly traded company in the Saudi stock market, has recommended the distribution of SR75 million as cash dividends for 2013.

The board also recommended increasing the company’s share capital from SR400 million to SR600 million through the distribution of 1 bonus share for every 2 owned shares.

The recommendations were discussed during a review of the company’s financial statements conducted at a board meeting that was convened on Jan. 20. The meeting also focused on Red Sea Housing’s corporate strategy and future expansion plans.

“These recommendations come as result of the board's effort to maximize shareholders’ returns while underlining the company’s robust financial performance,” said Mohammed Othman Mallawi, investor relations manager, Red Sea Housing Services Co.

“In addition to supporting the company’s capitalization, the board’s recommendations also complement our long-term growth strategy of expanding current activities, entering new international markets, investing in the construction materials sector, and engaging in affordable housing sector,” Mallawi added.

Founded in 1976 and listed on the Saudi Stock Exchange (Tadawul) since 2006, Red Sea Housing Services Company is a globally renowned manufacturer of modular and prefabricated buildings. The company last raised its capital from SR300 million to SR400 million in 2012, consequently bringing up the number of its shares to 40 million.

Arab News