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
15.05
0.05 0.33 (%)
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
Foreigners queue for opening of $500bn Saudi bourse

Foreigners queue for opening of $500bn Saudi bourse

Worth more than all other Gulf Arab markets combined, it is one...

Events that moved the markets

Events that moved the markets

What, if anything, have we learnt from past crises that have...

Big Gulf sell-off fuelled by credit, lax regulation

Big Gulf sell-off fuelled by credit, lax regulation

New impetus to governments in the region to improve financial...

Most Discussed