Saudi Investment shareholders approve 20% capital increase, with one bonus share for every five shares
Shareholders of the Saudi Investment Bank approved a 20% increase in the bank’s capital, from SAR 12.5 billion to SAR 15 billion, through the issuance of bonus shares at a ratio of one free share for every five existing shares. The move aims to strengthen the bank’s capital base and support its growth and expansion plans in the coming years.
The approval was granted during the extraordinary general meeting held on October 1, 2026, after the board of directors had recommended the increase in May and the proposal subsequently received approval from the Capital Market Authority.
250 million new shares
Under the decision, the number of the bank’s shares will rise from 1.25 billion to 1.5 billion, an increase of 250 million shares. The SAR 2.5 billion increase will be funded by capitalizing SAR 1.5 billion from the statutory reserve and SAR 1 billion from retained earnings.
According to the details of the increase, shareholders entitled to the bonus shares are those who own shares on the eligibility date of October 1 and are registered in the bank’s shareholder registry at the Securities Depository Center at the end of the second trading day following the eligibility date. In the event of fractional shares, they will be combined into a single portfolio and sold at the market price, with the proceeds distributed to eligible shareholders according to their holdings within a period not exceeding 30 days from the date the eligible shares are determined.
Adjustment of reference price and deposit of shares
Market data showed that the fluctuation limits for the bank’s shares in Sunday’s session on October 4 were based on a price of SAR 12.11, with existing orders canceled. The Securities Depository Center is scheduled to deposit the additional shares into investors’ portfolios by October 6.
Bonus shares do not mean that new cash flows into the bank; rather, the transaction reclassifies part of shareholders’ equity as capital. However, increasing statutory capital strengthens the bank’s ability to support business growth and meet capital requirements associated with expanding its banking activities.
Why is the bank increasing its capital?
When announcing the board’s recommendation, the bank said the increase was aimed at supporting its capital base in a way that would enhance its ability to achieve higher growth rates and keep pace with future increases in its activities. The Capital Market Authority approved the increase request on August 27, before it was presented to the extraordinary general meeting.
The move comes as Saudi Arabia’s banking sector is experiencing expansion in credit and financing, making capital levels an important factor in banks’ ability to continue growing while maintaining solvency and regulatory requirements.
What does the decision mean for shareholders?
Each eligible shareholder will receive one additional share for every five shares held, subject to the eligibility requirements. Since the transaction involves bonus shares rather than a cash distribution, the reference share price will be adjusted to reflect the increase in the number of shares, while the total economic value will thereafter remain subject to market movements and the bank’s performance.
Sources: Saudi Exchange – announcement of the capital increase recommendation and Capital Market Authority approval; Argaam – results of the extraordinary general meeting and details of the bonus shares, October 4, 2026.
