Riyadh – Mubasher: The board members of Banque Saudi Fransi and Arabian Contracting Services Company (Al Arabia) proposed a capital hike by granting bonus shares, according to bourse disclosures.
The bank will raise its capital through the issuance of nearly one bonus share for each owned share.
Following the increase process, the new capital will stand at SAR 25 billion distributed over 2.50 billion, compared to SAR 12.05 billion distributed over 1.20 billion.
Banque Saudi Fransi will transfer SAR 12.94 billion from the retained earnings and statutory reserve accounts to implement the transaction.
The board recommended the 107.41% capital raise, on 30 May, to reinforce the lender’s financial position which contributes to achieving its strategic objectives.
Al Arabia
The company will increase its capital by 10% to SAR 550 million from SAR 500 million through the issuance of one bonus share for every 10 owned shares.
The new capital will be distributed over 55 million shares, instead of 50 million shares.
In line with Al Arabia’s future growth and expansion plans, the Saudi firm will capitalise SAR 50 million from the retained earnings account to carry out the hike transaction.
Both recommendations are still subject to the approvals of the shareholders of Banque Saudi Fransi and Al Arabia during the extraordinary general meeting (EGM).
In the first quarter (Q1) of 2024, the bank’s net profits grew by 6.87% year-on-year (YoY) to SAR 1.15 billion from SAR 1.07 billion.
Meanwhile, Al Arabia posted 11.01% YoY higher net profits at SAR 100.82 million in Q1-24, compared to SAR 90.82 million.
