Banque Saudi Fransi plans 25pc capital increase
Riyadh, January 3, 2012
Banque Saudi Fransi, part-owned by France's Credit Agricole, has proposed a capital increase through a bonus share issue to help fund the bank's expansion, it said in a stock exchange announcement.
The 25-percent increase will see the bank's capital raised to 9.04 billion riyals ($2.41 billion) from 7.23 billion riyals through the issue of one bonus share for every four currently held by shareholders, the statement said.
The capital increase, which will be funded by the bank's general reserve, still requires the approval of the kingdom's regulator, the Saudi Arabian Monetary Agency, and shareholders who will meet during in the first quarter to vote on the proposal, the filing added.
Banque Saudi Fransi is the fifth largest in Saudi Arabia by market capitalisation.
The bank posted a 22 percent rise in third-quarter profits in October, although the 760 million riyals figure was slightly below analysts' estimates. Its shares closed at 41.80 riyals on Monday ahead of the announcement.
Smaller rival Saudi Hollandi Bank, the kingdom's eighth-largest bank by market capitalisation, said in December it was planning a 20-percent capital increase to fuel growth.