RIYADH: The Saudi Investment Bank, known as SAIB, got the Capital Market Authority’s green light to increase its capital to SR10 billion ($2.7 billion) through offering bonus shares.
This will raise SAIB’s capital by 33 percent, up from SR7.5 billion, a statement by the CMA on Jan. 9 revealed.
SAIB is to extract the amount, equivalent to SR2.5 billion, from its statutory reserve account.
It will grant its eligible shareholders one bonus share for every three shares.
The decision came as a step towards improving the bank’s capital base to support growth and meet future financial needs, SAIB said in a bourse filing last December.
Riyadh-based SAIB was established in 1977 and has a market cap nearing SR16 billion as of Jan. 10.