CMA approves Bank Albilad’s capital hike to SAR 15B via bonus issue

The Capital Market Authority (CMA) approved today, March 10, Bank Albilad’s request to increase its capital from SAR 12.5 billion to SAR 15 billion by distributing one bonus share for every five shares owned.

Eligible shareholders are those registered with the Securities Depository Center Co. (Edaa) by the close of the second trading day after the record date, which will be determined later by the bank's board.

The capital top-up will be funded by transferring SAR 1 billion from the statutory reserve account and SAR 1.5 billion from the retained earnings account to Bank Albilad’s capital.

As a result, the bank's share capital will increase from 1.25 billion to 1.5 billion, reflecting an additional 250 million shares.

The deciding extraordinary general meeting (EGM) must be held within six months of the CMA’s approval date. The bank is required to comply with all regulatory requirements and applicable laws.

According to data available with Argaam, Bank Albilad’s board of directors recommended in February a 20% capital top-up from SAR 12.5 billion to SAR 15 billion, through a 1:5 bonus issue, as shown below: