Bank Albilad plans 25% capital hike through bonus shares

Bank Albilad’s board of directors recommended raising the lender’s capital by 25 percent from SAR 6 billion (600 million shares) to SAR 7.5 billion (750 million shares) through the issuance of one bonus share for every four shares held.

The move is aimed to boost Albilad’s financial resources, the bank said in a bourse statement on Tuesday.

The capital hike will be financed through recapitalizing SAR 1.5 billion from statutory reserve and retained earnings.

The company will combine share fractions, if any, in one portfolio and sell it within 30 days after allotment of the new shares.

The capital increase is subject to the approval of the regulatory authorities and the extraordinary general assembly meeting, the statement added.

Shareholders registered at the Securities Depository Center (Edaa) two days after the planned extraordinary general assembly date will be eligible to receive the bonus shares, the statement added.