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RIYADH – Saudi Arabia’s Capital Market Authority (CMA) approved Al Rajhi Bank’s request to increase its capital from 40 billion riyals to 60 billion riyals through a one-for-two rights issue, the CMA announced Monday.
The increase will be funded by transferring 20 billion riyals from retained earnings, according to a statement released by the CMA. This will increase the number of outstanding shares from 4 billion to 6 billion, a rise of 2 billion shares.
The CMA stipulated that the date for the extraordinary general assembly should not exceed six months from the date of this approval, and that the bank must complete all necessary regulatory procedures.
Al Rajhi Bank’s board of directors initially recommended the capital increase in January 2026, proposing the issuance of bonus shares to shareholders at a ratio of 50%, as reported by Argaam. The move aims to strengthen the bank’s financial position and support its strategic objectives.
Shareholders will receive one new share for every two shares they currently hold, with eligibility determined by those registered on the shareholder record at the Depository Center at the finish of the second trading day following the date of entitlement, which will be determined by the bank’s board of directors at a later date.
The decision follows a review of the bank’s application and aligns with the CMA’s regulatory framework for capital increases. The approval underscores confidence in Al Rajhi Bank’s financial stability and growth prospects within the Saudi banking sector.