Riyadh — Mubasher: The Saudi Investment Bank (SAIB) has invited its shareholders to attend an extraordinary general meeting (EGM) scheduled for 1 October to vote on a board recommendation to increase the bank’s capital by 20%.

Under the proposal, the bank intends to raise its capital from SAR 12.50 billion to SAR 15 billion. The increase will be achieved by capitalizing SAR 2.50 billion from statutory reserves and retained earnings.

Specifically, the bank will capitalize SAR 1.50 billion from the statutory reserve and SAR 1 billion from retained earnings to issue 250 million new shares. This will bring the total number of shares from 1.25 billion to 1.50 billion, with a par value of SAR 10.0 per share.

The bank stated the capital hike aims to strengthen its capital base to support growth and expansion over the coming years.

Eligibility for the bonus shares will be for shareholders owning stock at the end of the trading day on 1 October, who are registered with the Securities Depository Center at the end of the second trading day following the meeting.

Fractional shares, if any, will be consolidated and sold at market price within 30 days of the allocation.

The Capital Market Authority(CMA) recently greenlighted the transaction.