Alinma Bank gets CMA nod for capital hike through bonus shares

Saudi Arabia’s Capital Market Authority (CMA) approved Alinma Bank’s request to increase its capital to SAR 20 billion from SAR 15 billion, through issuance of 1 bonus share for every 3 shares held by shareholders.

The capital hike will be financed by transferring SAR 3.42 billion from the statutory reserve and SAR 1.58 billion from retained earnings, the market regulator said in a statement.

Accordingly, the bank’s outstanding shares will be increased by 500 million from 1.5 billion to 2 billion.

The extraordinary general assembly should be held within six months from the approval date and the bank should satisfy all regulatory requirements and applicable laws, the statement added.

In December 2019, Alinma board of directors recommended raising capital by 33.33% to SAR 20 billion to boost its resources and maintain strong growth rates going forward, Argaam earlier reported.