Shareholders in Saudi Arabia's Almarai have agreed to double the company's share capital through a two-for-one bonus share issue, the firm said in a statement on Monday.

The Gulf's largest listed dairy producer has raised its share capital to SR2.3 billion from SR1.15 billion, while the number of shares has increased to 230 million from 115 million following an extraordinary shareholders meeting on Sunday.

Almarai's share price will halve to 109.75 riyals from Sunday's close of 219.50 riyals, with these changes coming into immediate effect.

A company typically increases the number of outstanding shares to make the stock cheaper in absolute terms helping boost trading activity.-Reuters