Thursday, 23 May 2024

Alinma Bank Approves SAR 25 Billion Capital Increase Through Retained Earnings and Bonus Shares

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Alinma Bank disclosed the outcomes of its Extraordinary General Assembly Meeting No. (5) (the second meeting), convened on Tuesday, where it sanctioned the Board of Directors’ proposal to augment capital by capitalizing part of the retained earnings, granting one bonus share for every four existing shares. Here are the specifics:

• Pre and Post-Increase Capital: Before the increase, the bank’s capital stood at SAR 20 billion, distributed across 2 billion shares. Post-increase, the capital reached SAR 25 billion, divided into 2.5 billion shares, signifying a total increase of SAR 5 billion and a 25% capital augmentation.

• Purpose of Increase: The Board emphasized that bolstering the bank’s financial standing aligns with its strategic objectives.

اقرأ المزيد

• Method of Increase: The augmentation will involve capitalizing SAR 5 billion from retained earnings, equating to approximately one bonus share for every four owned shares.

• Eligibility for Shareholders: Shareholders eligible for the capital increase are those holding shares at the end of trading on the assembly day and registered with the Securities Depository Center Company (“Edaa”) by the end of the second trading day following the entitlement date.

• Treatment of Fractional Shares: Fractional shares will be consolidated and sold at market price, with proceeds distributed to entitled shareholders within 30 days of determining new share allocations.

Furthermore, the assembly approved an amendment to Article (7) of the Bank’s bylaws regarding Capital. Additionally, the Board received authorization to distribute interim dividends quarterly or semi-annually for the fiscal year 2024, in accordance with the Implementing Regulation of the Companies Law for Listed Joint Stock Companies.

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