Al Rajhi Bank gets CMA nod on 60% capital increase to SAR 40 bln

Logo of Al Rajhi Bank

The Capital Market Authority (CMA) approved Al Rajhi Bank’s request to increase capital from SAR 25 billion to SAR 40 billion by issuing three bonus shares for every five existing shares, according to a statement.

The increase will be financed by transferring SAR 15 billion from the retained earnings, increasing the share capital from 2.5 billion to 4 billion shares.

The extraordinary general meeting (EGM) should be held within six months from this approval, provided the bank finalizes the relevant regulatory procedures.

Last month, the bank’s board of directors recommended a capital increase to SAR 40 billion from SAR 25 billion through a 60% bonus issue, Argaam reported.