The Saudi Investment Bank (SAIB) announced that its Board of Directors has recommended to the Extraordinary General Assembly a capital increase of 25% by issuing bonus shares to the bank’s shareholders.
The capital increase will raise the bank’s capital from 10 billion SAR to 12.5 billion SAR, by capitalizing 2.5 billion SAR from the Statutory Reserve. The bank will grant one bonus share for every four shares held by the shareholders.
The Saudi Investment Bank bonus shares will be eligible for the shareholders registered in the bank’s shareholders’ register with the Securities Depository Center Company (Edaa) by the end of the second trading day following the date of the Extraordinary General Assembly meeting, which will be scheduled later.
In case of bonus shares fractions occurrence, then all fractions will be grouped into a single portfolio for all shareholders and sold at the market price and then distributed to the shareholders entitled to the grant each according to their share within 30 days of the date of the determination of the shares due to each shareholder.
The Saudi Investment Bank said that the capital increase aims to support the bank’s capital base, which will increase the growth percentages and meet the future increases in the bank’s activities.
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. It should be noted that the bank has obtained no-objection from the Saudi Central Bank on the capital increase.
The Saudi Investment Bank (SAIB) is a leading bank in Saudi Arabia that offers various banking services, such as personal finance, credit card, current account, and E-Banking. It also provides news, share price, and social media updates on its website.
According to Wikipedia, the bank operates through a 52 branch network as of 2019, including 10 ladies branches distributed throughout Saudi Arabia.
The bank is engaged in the financing of quasi-governmental and industrial sectors and trade finance that includes import and export activities. Recently, the bank announced that its Board of Directors has recommended to the Extraordinary General Assembly a capital increase of 25% by issuing bonus shares to the bank’s shareholders, by capitalizing 2.5 billion SAR from the Statutory Reserve.
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