Al Rajhi Bank gets CMA approval for 53.8% capital hike

Saudi Arabia’s Capital Market Authority (CMA) on Monday approved Al Rajhi Bank’s request to increase its capital to SAR 25 billion from SAR 16.25 billion, through issuance of seven bonus share for every 13 existing shares owned by the shareholders.

The capital hike will be financed by transferring SAR 8.75 billion from retained earnings to the company's capital, the CMA said in a statement.

Accordingly, the bank’s outstanding shares will be increased from 1.63 billion shares to 2.5 billion shares.

The extraordinary general assembly should be held within six months from the approval date and the company should satisfy all regulatory requirements and applicable laws, the statement added.