JEDDAH, 25 January 2006 — The Saudi Capital Market Authority (CMA) approved yesterday the requests of the Saudi British Bank (SABB), Riyad Bank and Al-Yamama Saudi Cement Co. to increase their capital through issuing bonus shares. CMA also announced yesterday that it is making changes to article 25 and 30 of its listing regulations.
CMA approved SABB request to raise its capital from SR2.5 billion to SR3.75 billion through issuing one bonus share for every two outstanding shares. The bank is to make this increase through transferring SR1.25 billion from the bank’s profits into its shareholder’s equity accounts. After the capital increase, the number of the bank’s shares would raise from 50 million to 75 million shares.
Riyad Bank also got CMA’s approval to increaser its capital from SR5 billion to SR6.25 billion through the issuance of one bonus shares for every four outstanding shares.
The increase of SR1.25 billion is to come from the bank’s profits. The bank’s shares will increase after the issuance of the bonus shares from 100 million to 125 million shares.
CMA also approved Al-Yamama request to increase its capital from SR450 million to SR1.35 billion through issuing two bonus shares for every outstanding share of the company.
With this increase, the total number of Al-Yamama company’s shares will triple from 9 million to 27 million shares. Al-Yamama’s capital increase will be paid from the company’s reserves accounts.
CMA also made some changes in its listing regulations in article 25, which deals with the obligation of listed entities to disclose major developments in their activities; and in article 30, which deals with the notification related to substantial shareholdings. CMA changes are set to tighten its control over major developments in the markets that might affect individual decisions and investments.
The changes are also set to control the speculation moves that resulted from the interest of large companies and tycoons to invest largely in companies’ stocks. CMA is prohibiting shareholders who own 10 percent or more of voting shares or convertible debt instruments to trade their shares without CMA approval
