The Capital Market Authority approves Bank Aljazira’s request to increase its capital by way of Rights Issue
Wednesday, February 21, 2018 at 3:53 PM
Wed Feb 21, 2018 15:53
The CMA has announced its resolution approving Bank Aljazira’s request to increase its capital by way of rights issue valued at SAR 3,000,000,000. The increase will be limited to the shareholders who are registered in the shareholders registry at the Security Depository Center as of the closing of the second trading day after the extraordinary general assembly meeting, which will be determined by the bank’s board of directors at a later date. The offering price and the number of shares offered for subscription will be determined by the bank after market closing of the same day in which the extraordinary general assembly meeting is to be held. After reviewing the bank’s application in light of the governing regulatory requirements, and the quantitative and qualitative criteria applicable to all companies requesting a capital increase, the CMA has issued its resolution approving Bank Aljazira’s capital increase request highlighted above. The rights issue prospectus will be posted and made available to the public at a later time.
An investment decision based on the bank’s board recommendation to increase its capital or the CMA’s approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk. Therefore, investors should carefully read the prospectus, which contains detailed information on the bank, the offering and risk factors. Thus, providing investors the ability to evaluate the viability of investing in the offering, taking into considerations the associated risks. If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to any investment decision.
The CMA’s approval of the prospectus should never be considered as a recommendation to participate in the offer nor invest in the bank's shares. The CMA’s approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.