Riyadh – Mubasher: The Saudi Capital Market Authority (CMA) has approved the capital increase request of Alinma Bank through the issuance of bonus shares.

The bank requested approval to raise its capital from SAR 15 billion to SAR 20 billion through the issuance of one bonus share for every three original existing shares, according to a statement to the Saudi Stock Exchange (Tadawul).

Eligibility for the new shares will be for shareholders who are registered in the shareholders' registry at the Security Depository Center (Edaa) at the closing of the second trading day following the due date, which will be determined later by the bank's board.

The capital hike will be financed from the bank’s statutory reserve and the retained earnings account.

Consequently, the number of shares will be increased by 500 million shares from 1.5 billion shares to 2 billion shares.

As per the CMA resolution, the extraordinary general assembly meeting (EGM) will be held within six months from the approval date after meeting the regulatory requirements and regulations.