Saudi Hollandi Bank said it has won approval from Capital Market Authority (CMA) to boost its capital by 20 per cent to SR4.76 billion ($1.26 billion) through issuance of bonus shares.

The eighth-largest listed lender in the kngdom, Saudi Hollandi said it will boost the bank’s outstanding shares from 396.9 million shares to 476.2 million shares, thus resulting in an increase of 79.3 million shares.

One bonus share will be issued for every (5) existing shares owned by the investors who are registered in the shareholders registry at the closing of trading on the day of the extraordinary general assembly, the top lender said in a statement on Saudi Tadawul website.

Such increase will be paid by transferring an amount of SR793.8 million from its “Retained Earnings” account to the bank’s capital, it stated.

The bonus shares eligibility is limited to the shareholders who are registered in the shareholders registry at the close of trading on the day of the extraordinary general assembly, which will be determined later by the bank’s board, and should be held within six months from the approval date, it added.-TradeArabia News Service