Logo of Bank AlJazira
The Capital Market Authority (CMA) approved the application from Bank AlJazira to raise its capital from SAR 8.2 billion to SAR 10.25 billion via a bonus issue, the market regulator said in a statement today, March 18.
Accordingly, one bonus share will be issued for every four shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by the bank’s board of directors.
The capital top-up will be funded by transferring SAR 2.05 billion from the statutory reserve. Therefore, the number of the bank’s shares will increase by 205 million from 820 million to 1.02 billion shares.
The CMA added that the bank’s extraordinary general meeting (EGM) should be held within six months from this approval date, provided that Bank AlJazira satisfies all regulatory requirements and requisite procedures.
The company’s board of directors recommended, on Jan. 25, a 25% capital increase, through capitalizing part of the statutory reserve, by distributing one bonus share for every four existing shares, according to Argaam’s data.
Capital Increase Details
Current Capital
SAR 8.2 bln
Current Number of Shares
820 mln
Capital Increase (%)
25%
New Capital
SAR 10.25 bln
New Number of Shares
1.02 bln
Method
Distributing one bonus share for every four shares held
Nature & Value of Reserve
Capitalizing SAR 2.05 bln from statutory reserve
Eligibility
Shareholders registered with Edaa on the second trading day following the EGM, the date for which will be determined later
Reason
Supporting the bank’s capital base, thus enabling it to achieve its strategic goals
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