JEDDAH, 31 March 2005 — Bahraini Saudi Bank (BSB) has raised its capital to BD50 million ($132.6 million) from BD20 million, following the successful completion on Tuesday of its rights share offering. A total of 300 million shares — which were offered over a two-week period — have been oversubscribed. Share allocations are currently being determined and new share certificates will be distributed by April 10.
The shares were issued at 120 fils per share. A bank statement said trading in BSB shares on the Bahrain Stock Exchange would resume on April 10 following the distribution of the new share certificates.
BSB shares last traded at 160 fils on March 10 compared with a year high of 166 fils in February and a low of 125 fils last April.
Fahad Mohammed Al-Athel, chairman of BSB, said: “On behalf of Bahraini Saudi Bank, I would like to thank all shareholders for their confidence and support in this initiative. This has been clearly demonstrated by the oversubscription of the rights offering.
“Continuing a strategic program of growth, diversification and enhancing our product range and services will be largely facilitated by the increased capital.” This has been made possible by the roles of our shareholders. We also extend our thanks to the Bahrain Monetary Agency, Bahrain Stock Exchange, the Securities and Investment Company and KPMG Corporate Finance (issue managers and financial advisers) for their support,”Al-Athel said. All those registered as shareholders on March 10, 2005 — the “record date” — were eligible to subscribe to the shares, which were offered on the basis of 1 share for every share held. Bahraini Saudi Bank was established in 1983 with a paid up capital base of BD20 million, equally held between Bahraini and Saudi shareholders. However, this restriction was recently removed, thus allowing greater flexibility for ownership.
It offers commercial and retail banking services to its customers in Bahrain. It meets the needs of small to medium-sized customers in the trade, retail, manufacturing, construction, services and real estate sectors through a full range of services such as overdrafts, loans, import letters of credit, trust loans and guarantees.