Jarir's stock split aims to spur small investors' trading, boost liquidity: Al-Agil

Muhammad Alagil, CEO of  Jarir Marketing Co.

Jarir Marketing Co.'s stock par value reduction comes with the aim of encouraging small investors to buy the stock, as well as boosting liquidity on the stock, said Chairman Mohammed Al-Agil.

He added, in a phone call with Argaam, that some small investors see Jarir stock as having a high value, noting that the move will spur trading on the company's stock and raise the percentage of small investors' ownership in the company.

Moreover, the stock split will have no impact on Jarir future investments or dividend distributions, said Al-Agil, indicating that the stock price following the stock split will result from dividing the market value on ten.

The company's board of directors ​recommended today, March 15, a stock split from SAR 10 to SAR 1, which will be submitted to the upcoming extraordinary general meeting. Accordingly, total number of shares will increase to 1.2 billion from 120 million shares.