Alinma Bank gets CMA nod to raise capital via 25% bonus shares

Logo of Alinma Bank

The Capital Market Authority (CMA) approved the application from Alinma Bank to increase its capital from SAR 20 billion to SAR 25 billion through a bonus share distribution at one share per every four held shares, the market regulator said in a statement today, March 26.

The capital top-up will be funded by transferring SAR 5 billion from retained earnings. Thus, the number of the shares will increase by 500 million from 2 billion to 2.5 billion.

The CMA added that the bank's extraordinary general meeting (EGM) should be held within six months from this approval date, provided that the bank satisfies all regulatory requirements and applicable laws.

Alinma Bank's board of directors recommended on Dec. 31, 2023, increasing capital by 25% through the distribution of one bonus share for every four shares held, according to Argaam's data.