SNB announces BOD recommendation to increase capital to SR60 billion by granting bonus shares

The Saudi National Bank announced that the Board approved by circulation on 12 January, 2023, a recommendation to the Extraordinary General Assembly to increase the Bank’s capital by granting bonus shares to the Bank’s shareholders through capitalization of SAR 15,220 million from the retained earnings by way of granting approximately 1 share for every 3 shares owned.
The bank administration said today on “Tadawul” that the capital before increase is SAR 44,780,000,000, but after increase will be SAR 60,000,000,000 with percentage of Capital increase 33.99 %. The bank added that the number of shares before the Capital increase is 4478000000 shares, but after the Capital increase will be 6000000000 shares.
The recommendation is aimed to strengthen the Bank’s financial position which contributes to achieving its strategic objectives.
The eligibility date 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.
In case of bonus shares fractions occurrence; all fractions will be collected in a single portfolio to be sold at market price, the value will be distributed to eligible shareholders each by their share during a period not exceeding 30 days from the date of the allocation of new shares to each shareholder.
The proposed grant is subject to obtaining necessary approvals from official authorities and Extraordinary General Assembly on the capital increase and number of granted shares.