Al Salam Bank Reduces Treasury Shares by 55 Million
Al Salam Bank has announced the sale of 55 million treasury shares, reducing its total holdings and signaling strategic financial maneuvers.
Summary
Al Salam Bank has sold 55 million treasury shares, decreasing its total treasury holdings. This move is part of the bank's strategic financial management.
Al Salam Bank B.S.C, a prominent player in the Islamic banking sector, has taken a significant step by selling 55 million treasury shares on the Bahrain Bourse, reducing its total treasury holdings from 100,932,001 to 45,932,001 shares. This transaction represents 1.672% of the issued share capital and marks a strategic financial maneuver by the bank.
The decision to sell a substantial portion of its treasury shares could be seen as a move to optimize the bank's capital structure and improve liquidity. By reducing the number of shares held in treasury, Al Salam Bank is potentially freeing up capital for other strategic investments or initiatives that could drive future growth and enhance shareholder value.
Al Salam Bank, headquartered in Bahrain since 2006, has built a reputation for its robust financial standing and innovative approach to Islamic banking. The bank's digital-first mindset and commitment to delivering Shari’a-compliant financial solutions have positioned it as a leader in the region.
The sale of treasury shares might also reflect the bank's confidence in its current market valuation and future prospects. By reducing its treasury holdings, the bank could be signaling that it believes its shares are fairly valued or even undervalued, potentially making it an attractive investment opportunity for shareholders.
Given the bank's strong financial performance, innovative banking solutions, and strategic initiatives, investors might consider holding onto their shares. The sale of treasury shares could be part of a broader strategy to enhance the bank's financial flexibility and position it for future growth.
In conclusion, Al Salam Bank's decision to sell a significant portion of its treasury shares is a noteworthy development. While it reduces the bank's treasury holdings, it also opens up opportunities for strategic investments and growth. Investors should keep an eye on the bank's future moves and consider holding their shares as the bank continues to strengthen its position in the Islamic banking industry.
Source
Summary
Al Salam Bank B.S.C. announced that on March 13, 2025, it sold 55,000,000 treasury shares on the Bahrain Bourse. This transaction reduced the bank's total holding of treasury shares from 100,932,001 to 45,932,001, representing 1.672% of the issued share capital. The information was communicated to both the Bahrain Bourse and the Dubai Financial Market. The announcement was made by Ali Yusuf Al Khaja, the Head of Compliance and MLRO, and included the company seal.
Summary
The Board of Directors did not specify a meeting date for the purchase decision. The competent authority approved the purchase on February 6, 2025, which is also the start date for the buyback program of treasury shares. This program is set to end on May 6, 2025, and involves a buyback size of 10% of treasury shares. On March 13, 2025, 55,000,000 shares were sold at an average price of 0.200 fils, representing 2% of the issued capital. Approximately 228,850,000 shares remain available for purchase or sale. The announcement was made by Ali Yusuf Al Khaja, representing Al Salam Bank B.S.C.
