Abdullah Alrajhi: Al Rajhi Bank BoD Recommends Capital Increase to SR40 Billion, by 60% through bonus shares

Mr. Abdullah bin Suleiman Al Rajhi, Chairman of the Board of Directors of Al Rajhi Bank, announced that the Board of Directors recommended to the Extraordinary General Assembly a capital increase from SAR 25 billion to SAR 40 billion, an increase of 60% by granting 3 bonus shares for every 5 shares owned.

The eligibility of the bonus shares shall be for shareholders owning shares by the end of trading day of the bank’s Extraordinary General Assembly meeting date (which will be announced later) and are registered at Securities Depository Center Company (Edaa) by the end of the second trading day following the Extraordinary General Assembly meeting date. The planned increase will be made through the capitalization of SAR 15 billion from the retained earnings.

The Chairman of the Board of Directors stated that the capital increase comes as a culmination of the results that the bank continues to achieve at all levels, which are always driven by the loyalty of its valued customers, the confidence of local and international shareholders, and the result of all the developments delivered, especially in digital banking. The capital increase will support the bank’s capital position and financial solvency which will help in executing and delivering the bank’s strategic goals and continuing to grow its financing and investment portfolios to support the national economy and the Kingdom’s Vision 2030 goals through providing financial solutions to its customers from retail, corporate and SMEs as well as participating in capital market activities.

Alrajhi also added, this step is also consistent with the Kingdom’s Vision and the government’s aspirations to build and develop a financial sector that supports the economic developments and the Kingdom’s global and regional position as a leading economy.

It is noteworthy that Al Rajhi Bank, as one of the largest and leading banking and investment companies in the Kingdom of Saudi Arabia, started its activity more than fifty years ago with a capital of SAR 750 million and increased over the years to reach SAR 25 billion by year-end 2021. Al Rajhi Bank is also the largest in the Middle East and among the top 15 banks globally by market capitalization which reach to SAR 397 billion (USD 106 billion) as at 17 February 2022.