Dar Al-Arkan, Saudi Arabia's largest property developer by market value, plans to offer shareholders one bonus share for each existing two to raise its capital and fund expansion, it said on Saturday.

The board proposed using the bonus issue to raise the firm's capital to SR10.8 billion ($2.88 billion) from SR7.2 billion, Dar al-Arkan said in a statement after a board meeting.

The capital hike, which will be funded from reserves and retained profit, will help 'ongoing and future expansion in the company's projects', it said.

Shareholders will vote for the bonus issue proposal at an extraordinary assemble of which the date will be fixed later.-Reuters