- RIYADH: The Saudi British Bank (SABB) announced on Saturday that its board of directors has decided to recommend to the Extraordinary General Meeting, subject to the approval of official authorities, the increase of SABB capital by 33 percent from SR7.5 billion to SR10 billion by issuing of bonus shares to its shareholders at the rate of one bonus share for each 3 shares held to the shareholders registered in the bank's shareholders register as of the end of trading on the EGM day which is scheduled for the first quarter of 2012 and which shall be announced in due course, the bank said in a statement.
The capital increase of SR2.5 billion represents 33 percent of the bank's capital so that the bank's new capital will become SR10 billion compared to SR7.5 billion, the statement added.
As a result of the intended increase, the number of shares issued will increase from 750 million shares to 1,000 million shares, as the additional increase will be used to enhance the bank's capital base and grow its profits and consequently strengthening the shareholders returns.
The board has also decided to recommend the payment of annual cash dividends for 2011 of SR562.5 million at the rate of SR0.65, which represents 6.5 percent of the share's nominal value per share after deduction of Zakat, taking into consideration that the cash dividends shall not accrue to the bonus shares.
