Bank Aljazira plans 30% capital hike, 5% dividend for FY16

Bank Aljazira’s board of directors recommended on Thursday a 30 percent capital increase to SAR 5.2 billion from SAR 4 billion, through the issue of three bonus share for every ten shares held.

The lender will capitalize SAR 1.2 billion of retained earnings in order to facilitate the capital hike, Aljazira said in a statement to Tadawul Thursday.

The move aims to boost the bank’s capital base in line with regulatory requirements.

Shareholders of record at the end of the extraordinary assembly meeting approving the capital increase will be eligible for the hike, the statement said.

Fractional shares will be accumulated in one portfolio and sold at market price within a maximum of 30 days after allotment.

The process is subject to regulatory and shareholder approvals, the company added.

Meanwhile, the bank recommended issuing a 5 percent cash dividend (at SAR 0.5 per share) for fiscal year 2016.

The lender’s shares were placed on a trading halt today starting 12.55 pm local time, prior to the announcements.