Al Rajhi Banks board proposes 60% capital raise

Riyadh – Mubasher: The board of Al Rajhi Bank has recommended a 60 % capital increase to SAR 40 billion from SAR 25 billion through bonus shares.

The capital raise will be carried out by granting three bonus shares for every five owned shares, according to a bourse filing on Sunday.

The bank will increase its capital through the capitalisation of SAR 15 billion from retained earnings. The new capital should be distributed over 4 billion shares, compared to 2.5 billion shares prior to the raise.

The board’s recommendation aims to enhance the bank’s resources to boost its business growth ratios over the coming years.

Al Rajhi Bank will announce the eligibility date for the bonus shares at a later time. The proposed capital hike is still subject to approvals of official authorities and the extraordinary general meeting (EGM).

It is worth noting that in 2021, the bank achieved net profits of SAR 14.74 billion, compared to SAR 10.59 billion 2020.