SABB gets Saudi regulator approval for 50% capital raise

The ​Saudi Arabian British Bank (SABB) said on Wednesday that its request to raise its capital by 50 percent from SAR 10 billion to SAR 15 billion has been approved by the Capital Market Authority.

The capital raise will take place through the issuance of one bonus share to each two shares held by registered shareholders, as SAR 2.5 billion of statutory reserve and SAR 2.5 billion of retained earnings will be capitalized.

The number of shares will increase accordingly from one billion shares to 1.5 billion.

Eligibility will be for registered shareholders on the day of the general assembly meeting, which should be held within six months of approval.

The CMA says its board approval of the offer should never be considered as a recommendation to invest in the company.