Riyadh – Mubasher: Al Rajhi Bank on Sunday announced that its extraordinary general meeting (EGM) has approved the decision to increase capital through the issuance of bonus shares.
Al Rajhi’s EGM agreed to top-up capital by 53.8% or 875 million shares to 2.5 billion shares or SAR 25 billion, the bank said in a statement indicating that prior to the hike, its capital comprised 1.625 billion shares worth SAR 16.25 billion.
The increase, which involves “seven bonus shares for every 13 shares owned,” will be carried out via the bank’s retained earnings.
The capital top-up will be used to “support the bank’s resources, which will contribute with good growth ratios in the future years,” Al Rajhi explained in its statement.
“The eligibility of the dividends shall be for shareholders owning shares by the end of trading day of Al Rajhi Bank’s General Assembly meeting date (which will be announced later) and are registered at Depository Center at the end of the second trading day following the General Assembly Meeting date,” it added.
Al Rajhi last reported a 13.6% year-on-year rise in profits to SAR 2.57 billion in the third quarter of 2018 from SAR 2.27 billion in the same period of 2017, while for the first nine months of the year, the bank logged SAR 7.52 billion in profits, up 12.8% year-on-year from SAR 6.67 billion.
By 10:09 am Saudi time, Al Rajhi Bank’s stock jumped 5.14% to SAR 92.
