The board of Dar al-Arkan Real Estate Development Company, the largest Saudi developer by market value, has proposed to issue one-for-three bonus shares to existing stockholders, the company said on Wednesday.

The issue of 180 million shares worth SR1.8 billion ($480 million), which will raise Arkan's capital by 33.3 per cent to SR7.2 billion, will be funded from profits, the company said in a statement on the bourse website.

The board also proposed to ask shareholders to approve a plan to issue local or international Islamic bonds, or sukuk. It gave no financial details of the plan.

Dar Al-Arkan posted a 44.9 per cent rise in second-quarter profit to SR687.53 million, beating a forecast, as sales growth picked up pace amid growing demand for property in the world's top oil exporter.

Dar Al-Arkan sold $1 billion worth of five-year sukuk last year.-Reuters