Aljazira Bank Recommends 25% Capital Increase

Aljazira Bank announced the Board of Directors’ decision to recommend to the bank’s Extraordinary General Assembly to increase the capital by capitalizing part of the statutory reserve and part of the retained earnings by granting one share for every four shares.

According to the bank’s statement on “Tadawul”, the capital after the increase will become 12.81 billion riyals instead of 10.25 billion riyals, at a rate of 25%.

He explained that the reason for the increase is to strengthen the bank’s capital base, which will contribute to enabling it to achieve its strategic objectives. He indicated that the increase in capital will be made by capitalizing an amount of 2.56 billion riyals from the statutory reserve account and the retained earnings account in equal proportions.

The entitlement to bonus shares will be for the bank’s shareholders registered with the Securities Depository Center Company (Edaa) by the end of the second trading day following the day of the bank’s Extraordinary General Assembly meeting, which will be announced later. Whereas in the event of fractional shares, the fractions will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed to the shareholders entitled to the grant, each according to his share, within a period not exceeding 30 days from the date of determining the new shares due to each shareholder.