Bank Aljazira gets CMA nod for 30% capital hike

The Capital Market Authority (CMA) has approved Bank Aljazira’s request to raise its capital to SAR 5.2 billion from SAR 4 billion through a three-for-10 bonus share distribution, Saudi Arabia’s market regulator said in a statement on Thursday.

Shareholders of record on the date of the extraordinary general meeting are eligible to receive these shares.

The lender will capitalize SAR 1.2 billion of retained earnings in order to facilitate the capital hike.

Accordingly, outstanding shares will be increased to 520 million from 400 million.

The process is subject to the lender’s fulfillment of the regulatory requirements of the corporate law and any other applicable laws.

Bank Aljazira’s board of directors recommended in March a 30 percent capital increase to boost the bank’s capital base in line with regulatory requirements.