SAIB gets CMA nod on capital hike to SAR 10 bln through bonus shares

Logo of Saudi Investment Bank

Saudi Arabia’s Capital Market Authority (CMA) approved the Saudi Investment Bank’s (SAIB) request to increase capital from SAR 7.5 billion to SAR 10 billion through the issue of one bonus share for every three shares held, the authority said in a statement today, Jan. 9.

Eligibility will be to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general assembly (EGM), which will be determined later by the bank's board.

The capital hike will be financed by transferring SAR 2.5 billion from the statutory reserve account, the statement added.

The EGM shall be held within six months from this approval date and the bank shall satisfy all regulatory requirements and applicable laws.​​

The bank’s board of directors recommended, on Dec. 16, a 33.33% capital hike to SAR 10 billion from SAR 7.5 billion through capitalizing part of the statutory reserve by distributing one-for-three bonus shares.