Saudi CMA approves SABBs capital raise request to merge with Alawwal Bank

Riyadh – Saudi Arabia's Capital Market Authority (CMA) approved Saudi British Bank’s (SABB) request for raising its capital to SAR 20.55 billion from SAR 15 billion.

SABB will carry out the capital raise through issuing 554.79 million ordinary shares to merge with Alawwal Bank and transfer all of Alawwal Bank’s assets and liabilities to SABB through a securities exchange offer, CMA said in a statement on Monday.

If SABB’s shareholders approved the capital raise and Alawwal Bank’s shareholders accepted the offer, “the new shares will be issued to Alawwal Bank shareholders who are registered in the shareholders registry at the Securities Depository Center Company and the shares of Alawwal Bank will be delisted from the Saudi Stock Exchange after the merger decision becomes effective,” the statement added.