Alinma Bank EGM Approves 20% Capital Increase Through Bonus Shares

Capital Increase Approved at Alinma Bank

In an extraordinary general meeting (EGM) held on April 21, Alinma Bank's shareholders approved a significant capital increase of 20%, facilitated through a one-for-five distribution of bonus shares. This decision will raise the bank's capital from SAR 25 billion to SAR 30 billion, reinforcing its financial stability and growth capabilities.

Details of the Resolution

The upcoming capital increase will be financed by utilizing SAR 5 billion from the bank's statutory reserves and retained earnings, allocated equally. This move aims to not only enhance the bank's capital structure but also to align with its strategic objectives that focus on long-term growth and resource retention for future initiatives.

Breakdown of the Capital & Share Increase

| Details | Amount | |---------|--------| | Current Capital | SAR 25 billion | | Increase Percentage | 20% | | Capital After Increase | SAR 30 billion | | New Number of Shares | 3 billion | | Bonus Shares Distribution | One for every five shares held | | Record Date | April 21, 2026 | | Reserves Utilized | SAR 5 billion (from statutory reserves and retained earnings) |

Employee Incentive Program

In addition to the capital increase, shareholders also approved a plan to repurchase up to five million shares to create an employee incentive program. This initiative is designed to reward and retain talent within the organization, demonstrating the bank's commitment to its workforce.

The buyback will be executed within 12 months and funded from the bank's own resources. The board of directors has been empowered to complete this process, ensuring the repurchased shares are retained for a maximum of 10 years, adhering to relevant regulatory procedures.

Next Steps

Following the EGM, fractional shares, if generated from this distribution, will be processed into a single portfolio. These will be sold at market price and proceeds distributed proportionately to shareholders within 30 days of the transaction.

On April 22, the fluctuation limits for the bank's share price will be set based on a valuation of SAR 24.65, and all existing orders will be canceled. Furthermore, the Securities Depository Center (Edaa) will deposit the newly issued shares into investors' portfolios by April 26, 2026.