SAB recommends up to 5.7M share buyback to retain as treasury

Logo of Saudi Awwal Bank’s (SAB)

Saudi Awwal Bank’s (SAB) board of directors recommended today, March 4, a buyback of up to 5.74 million ordinary shares to be allocated to the bank’s employee incentive share program.

In a statement to Tadawul, the lender said the repurchased shares would be held as treasury stock and funded from internal resources. Treasury shares currently account for 0.25% of the total class targeted under the buyback, and the new shares will not carry voting rights.

The transaction requires approval from the upcoming extraordinary general meeting (EGM) under Article 17 of the executive regulations of the Companies Law for listed firms, with the meeting date to be announced later. 

The bank said it will meet the solvency conditions set out in the regulations and will submit a report from its external auditor confirming compliance.