First Gulf Bank to issue bonus shares from buyback plan

  • Share via facebook
  • Tweet this
  • Bookmark and Share
SHAREHOLDERS BENEFIT: The distribution of bonus shares is subject to approval by the authorities and the annual general meeting. (ITP Images)

SHAREHOLDERS BENEFIT: The distribution of bonus shares is subject to approval by the authorities and the annual general meeting. (ITP Images)

The First Gulf Bank said on Thursday it plans to distribute 75 million shares bought under its buyback programme as bonus shares, in a move to benefit its shareholders.

FGB initiated the share buyback programme in early 2009 to counter poor trading due to weak market sentiment and improve liquidity.

The move is subject to approval by the competent authorities and the annual general meeting, a statement by the bank said.

The shares buyback law stipulates that a listed company can keep them as treasury shares and cancel or sell them after a certain period.

“We did not want to sell the shares. We decided to give back this advantage to the shareholders in the form of bonus shares,” a bank official told Reuters.

It is the first time that a company is distributing shares bought under its buyback programme as bonus shares to its own shareholders.

Related:
Companies

Market Performance

First Gulf Bank
19.3
0.25 1.31 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Saudi Arabia accelerates reform push with market opening

Saudi Arabia accelerates reform push with market opening

Stock market move follows labour market reforms and a new mortgage...

Is $50bn wipeout enough to trigger UAE market changes?

Is $50bn wipeout enough to trigger UAE market changes?

That sum is the value wiped off the Dubai and Abu Dhabi stock...

Most Popular
Most Discussed