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Logo of Riyad Bank
The Capital Market Authority (CMA) approved Riyad Bank’s request to raise its capital from SAR 30 billion to SAR 40 billion, the market regulator said in a statement.
The CMA said the planned capital hike will be carried out via a 1-for-3 bonus share distribution.
Eligibility for the bonus issue will be for shareholders registered with the Securities Depository Center (Edaa) by the end of the second trading day following the record date, which will be determined later by the company’s board of directors.
The proposed capital increase will be funded by capitalizing SAR 5 billion from statutory reserve and SAR 5 billion from retained earnings. Accordingly, the number of shares will rise from three billion to four billion.
The CMA added that the deciding extraordinary general meeting (EGM) should be held within six months from this approval, provided all regulatory requirements and applicable laws are satisfied.
According to Argaam’s data, Riyad Bank's board of directors recommended in February a 33.33% capital increase via bonus shares.
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Capital Increase Details |
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Current Capital |
SAR 30 bln |
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No. of Shares |
3 bln |
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Proposed Increase |
33.33% |
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Method |
Capitalizing SAR 10 bln equally from statutory reserve and retained earnings |
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New Capital |
SAR 40 bln |
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New No. of Shares |
4 bln |
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Record Date |
Shareholders of record date who are registered with Edaa by the end of second trading day after record date |
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Reason |
Enhance the bank's solvency and maintain its resources in operational activities, thus contributing to the achievement of its strategic goals |
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