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The Capital Market Authority (CMA) has officially approved a request from The Saudi Investment Bank (SAIB) to increase its capital from SAR 12.5 billion to SAR 15 billion. The capital expansion will be executed by issuing one bonus share for every five existing shares held by eligible shareholders. To finance this capital hike, the bank will transfer SAR 1.5 billion from its statutory reserve and SAR 1 billion from retained earnings, raising the total number of outstanding shares from 1.25 billion to 1.5 billion.
This corporate action reflects the bank's strategic initiative to strengthen its financial position and retain earnings internally to fuel future operational expansion. Share eligibility will be granted to investors registered in the Securities Depository Center (Edaa) at the close of the second trading day following the extraordinary general assembly meeting (EGM) date. The CMA specified that the EGM must convene within six months of the approval date to finalize statutory requirements.
For equity market participants and banking sector observers, the capitalization of reserves is seen as a positive sign of organic growth and balance sheet strength. Local investors in Tadawul typically favor bonus issues as they boost overall liquidity and demonstrate corporate confidence. Going forward, traders should monitor SAIB's official announcement regarding the finalized EGM date to track the record date for share allocation.
