Saudi Arabia's Almarai has received shareholder approval to increase its capital by 50 per cent to SR6 billion ($1.60 billion), the dairy firm said in a statement on Tuesday.

The company will increase the number shares to 600 million from 400 million by issuing one bonus share for every two outstanding shares. Each share has a nominal value of 10 riyals.

The capital increase will support Almarai's SR15.7 billion five-year capital funding programme, according to a statement to the Saudi bourse.

Almarai last week mandated four banks to arrange the sale of a 1.7 billion riyals Islamic hybrid bond, or sukuk.-Reuters