Saudi's NCB plans to raise capital with 10 billion riyal bonus share issue

Saudi's NCB plans to raise capital with 10 billion riyal bonus share issue:

"Saudi Arabia’s National Commercial Bank (NCB), the kingdom’s largest lender, said on Sunday its board had proposed increasing the bank’s capital by 10 billion riyals ($2.7 billion) through issuing bonus shares to help support growth.

In a statement to the Saudi stock market, NCB said it will increase its capital to 30 billion riyals from retained earnings, by issuing one bonus share for every two shares owned, subject to approval from shareholders and authorities.

No money is being raised from shareholders, who are getting the new shares for free, but the move is an accounting device that bolsters the bank’s equity, thus helps future lending."



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