Alinma Bank gets CMA nod on 20% capital hike via bonus issue

The Capital Market Authority (CMA) approved Alinma Bank's request to increase capital from SAR 25 billion to SAR 30 billion.

The planned capital top-up will be carried out through a one-for-five bonus share distribution, to shareholders of record who are registered with the Security Depository Center (Edaa) by the close of trading on the second trading day after the record date that will be determined later.

The potential transaction will be financed through capitalizing SAR 5 billion from the statutory reserve and retained earnings in equal proportions. Consequently, the number of shares will be increased from 2.5 billion to 3 billion.

The deciding extraordinary general assembly should be held within six months from this approval date. Alinma Bank should satisfy all regulatory requirements and applicable laws.