Saudi-based Red Sea Housing Services Company said it has won approval from shareholders to increase its share capital by 50 per cent  to SR600 million ($160 million) from SR400 million.

This will be done through the distribution of a bonus share for every two owned shares, said the board of directors at the Saudi company's general body meeting held last month.

Red Sea Housing Services Company is a globally renowned manufacturer of modular and prefabricated buildings. It operates factories at Jubail in Saudi Arabia, Jebel Ali in Dubai and Accra in Ghana.

The board members also recommended the distribution of SR75 million as cash dividends for 2013, said the company in its statement.

Commenting on the move, Mohammed Othman Mallawi, the investor relations manager, said: "These recommendations come as result of the board's effort to maximize shareholders’ returns while underlining the company’s robust financial performance."

At the meeting , the board members also discussed Red Sea Housing’s corporate strategy and future expansion plans, stated Mallawi.
 
“In addition to supporting the company’s capitalization, these 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,” he added.

The company had last raised its capital to SR400 million in 2012, consequently bringing up the number of its shares to 40 million.

Founded in 1976, Red Sea Housing is now one of the leading providers of high-profile modular housing solutions for companies involved in oil, gas, and mining excavation activities.-TradeArabia News Service