Arab National Bank Board Proposes SAR 20 Billion Capital Increase, Offering One Bonus Share for Every Three Shares Held

On Wednesday, the Arab National Bank announced the Board of Directors’ decision to recommend to the bank’s extraordinary general assembly an increase in capital from SAR 15 billion to SAR 20 billion, representing a 33.33% increase, by issuing free shares to shareholders in the form of one bonus share for every three shares owned.

As per the announcement published on Tadawul, this recommendation aims to bolster the bank’s financial solvency. The capital increase will be executed by capitalizing an amount of SAR 5 billion from the retained earnings account and the statutory reserve. The bank clarified that the number of shares before the increase was 1.5 billion shares, which will rise to 2 billion shares after the increase.

Eligibility for the bonus shares will be granted to shareholders who own shares at the end of trading on the day of the bank’s extraordinary general assembly and who are registered in the bank’s shareholder register with the Securities Depository Center Company (Edaa) at the end of the second trading day following the assembly date.

In cases of fractional shares, the fractions will be consolidated into a single portfolio for all shareholders and sold at market price, with the proceeds distributed to entitled shareholders proportionally within a period not exceeding 30 days from the allocation of new shares.

The bonus share grant is subject to approval from official authorities and the extraordinary general assembly for the capital increase and the number of shares allocated. It is noteworthy that a non-objection certificate from the Central Bank of Saudi Arabia has been secured for the capital increase.