AI Summary
Al Rajhi Bank’s capital increase will be financed through capitalizing SAR 20 billion from retained earnings
Al Rajhi Bank’s board on Jan. 13 recommended a 50% capital hike to SAR 60 billion from SAR 40 billion through distributing one bonus share for every two shares held.
The capital increase will be financed by capitalizing SAR 20 billion from retained earnings.
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Capital Increase Details |
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Current Capital |
SAR 40 bln |
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Current No. of Shares |
4 bln |
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Percentage of Increase |
50% |
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Capitalization |
Capitalizing SAR 20 bln from retained earnings |
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New Capital |
SAR 60 bln |
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New No. of Shares |
6 bln |
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Record Date |
Shareholders of record and those registered with Edaa by the close of the second trading day following the extraordinary general meeting (EGM), the date of which will be announced later. |
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Reason |
To enhance the bank's financial position, which contributes to achieving its strategic objectives. |
Fractional shares, if any, will be compiled in one portfolio for all shareholders and will be offered at market price. Proceeds will be distributed among entitled shareholders pro rata within 30 days maximum, the bank said in a statement to Tadawul.
The decision, which received the Saudi Central Bank’s (SAMA) no-objection, is conditional on approvals from competent authorities and shareholders, the statement added.
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