Al Rajhi Bank’s board proposes 60% capital increase to SAR 40 bln via bonus issue

Logo of Al Rajhi Bank 

Al Rajhi Bank’s board of directors recommended a capital increase to SAR 40 billion from SAR 25 billion through a 60% bonus issue, the bank said in a bourse filing.  

The capital increase will be financed through the capitalization of SAR 15 billion from the retained earnings via distributing three bonus shares for every five shares held.

The board’s proposal is pending the approvals of the competent authorities as well as the bank’s extraordinary general meeting (EGM).

Share fractions will be deposited in one portfolio and will be offered at market price. Proceeds will be distributed to eligible shareholders pro rata within a maximum of 30 days from distribution.

Shareholders of record on the EGM date, which will be determined later, and those registered at Securities Depository Center Company (Edaa) by the end of the second trading day following the EGM will be eligible for the increase.