ANB EGM to discuss 33.33% capital hike through bonus issue; 5M shares buyback on May 20

Logo of Arab National Bank (ANB)

Arab National Bank's (ANB) shareholders will discuss the board's recommendation on raising capital by 33.33%, during the extraordinary general meeting (EGM) that will be held on May 20.

In a Tadawul filing, the bank said the capital increase will be carried out through offering one bonus share for three shares held.

Fractional shares, if any, will be collected in one portfolio for all shareholders and sold at market price. Their value will be distributed among the eligible shareholders on pro rata within 30 days maximum from the date of determining the new shares eligible for each shareholder.

In addition, shareholders will discuss repurchasing a maximum of 5 million shares to allocate them for the employee stock option, which will be financed from the bank's resources.

The board will be authorized to carry out the repurchase within 12 months from the EGM date, according to the statement.

The bank will retain the repurchased shares for a maximum of 10 years from the EGM date until they are allocated to the stock employee option. After this period, the procedures and controls stipulated in the applicable regulations will be applied.