Saudi Arabia’s Alinma Bank said on Sunday that it plans to increase its capital from 15 billion riyals ($3.99 billion) to 20 billion riyals by issuing bonus shares to its existing shareholders.
The bank’s board of directors recommended a 33.33 percent capital increase.
Alinma, which is listed on the Saudi Stock Exchange (Tadawul) said it plans to issue one share for every three shares. The issuance is still pending approval of regulatory authorities in Saudi Arabia, the bank added.
The bank’s shares surged 5.45 percent on Sunday after the board’s proposal.
Banks and companies often raise their share capital by giving existing shareholders the right to subscribe to bonus shares in exchange for cash.