Riyadh – Mubasher: The Saudi Capital Market Authority (CMA) has approved Al Rajhi Bank’s request to increase its capital by SAR 8.75 billion ($2.33 billion).
Following the capital top-up, the Saudi bank’s capital will rise to SAR 25 billion from its current SAR 16.25 billion.
Al Rajhi’s capital increase will be carried out by offering seven bonus shares for every 13 outstanding shares held by shareholders at the end of the second day of trading following the maturity date, which will be determined by the bank’s board of directors, the CMA said in a statement on Monday.
The SAR 8.75 billion capital hike will be paid by transferring the sum from Al Rajhi’s retained earnings, the CMA added, noting that following the increase, Al Rajhi’s shares will rise 2.5 billion shares from 1.625 billion currently.
The bank’s extraordinary general meeting (EGM) must be held within six months of receiving the CMA’s approval, the authority concluded.
Al Rajhi Bank’s stock closed Monday in the green, adding 0.20% to SAR 101.40 on the Saudi Stock Exchange (Tadawul).
On Sunday, Al Rajhi logged SAR 10.30 billion in profits in 2018, registering a year-on-year rise of 13% from SAR 9.12 billion.
