RIYADH: The Extraordinary General Assembly Meeting of Al Rajhi Bank has approved to increase the Bank’s capital by SAR 8.7 billion through granting bonus shares with an aim to enhance bank’s resources to achieve good growth rates going forward, a bourse filing said on Thursday.
Founded in 1957, Al Rajhi Bank is one of the largest Islamic banks in the world with total assets of SR 343 billion (US$ 90 billion), a paid up capital of SR 16.25 billion (US$ 4.33 billion) and an employee base of over 9,600 associates.
With the approved increase, Al Rajhi Bank’s capital would increase by 53.8% to SAR 25 billion.
The capital increase will be made through the capitalization of SAR 8.75 billion from retained earnings account by granting 7 shares for each 13 owned shares. In case of bonus shares fractions occurrence; the bank will collect all fractions in one portfolio to be sold by market price, the value will be distributed to eligible shareholders each by their share within 30 days from the allocation of new shares to each shareholder.
The eligibility will be for shareholders that own shares at the end of trading of the meeting date and registered in the Bank’s share registry at the Depository Center at the end of the second trading day following the meeting date.
The Saudi Stock Exchange (Tadawul) announced that the addition of the bonus shares and the fluctuation limits for Al Rajhi Bank will be based on a share price of SAR 71.80.
The Assembly also approved the delegation of the Board of Directors to distribute interim cash dividend on semiannually or quarterly basis for the fiscal year 2019 and approve maturity and payment date as per regulatory controls and procedures issued under Companies Law.
General Assembly Meeting of Al Rajhi Bank also approved the payment of SAR 5.945 million as remunerations and compensations to the members of the Board of Directors and Board Committees for their membership during the period from 1st January 2018 to 31st December 2018.
It may be mentioned here that the bank posted a net profit of SAR10.297 billion for the year ended December 31, 2018, up 12.9 percent compared with the profit of SAR 9.12 billion in the previous year.[the_ad id=”31605″]