Saudi Arabia's Capital Market Authority has approved Bank AlJazira's planned capital increase via a rights issue amounting to 3 billion Saudi Arabian riyals.

The number of shares to be offered for subscription and their offer price will be determined at closing on the day of the bank's annual general meeting, according to a Feb. 21 release. The cash call will be limited to registered shareholders on the record of the bank's Security Depository Center as of the closing of the second trading day after the AGM, the date of which is yet to be determined.

The prospectus for the rights issue will also be released on a separate day.

In early October 2017, the lender tapped Alinma Investment Co. and JP Morgan Saudi Arabia to serve as financial advisers for the rights issue.

As of Feb. 21, US$1 was equivalent to 3.75 Saudi Arabian riyals.