The Clap CIB will increase its capital by EGP 10 billion, representing approximately 50% of the bank’s total current capital (EGP 19.82 billion).
How The increase will be through distributing 1 billion bonus shares. Shareholders will receive 0.5 shares per share and the capital increase will be financed from the company’s general reserves.
Why this Matters The distribution of bonus shares is a form of profit distribution. This profit distribution benefits the company because profits are redirected to capital and are not paid in cash to shareholders.
This drives the stock price down, making it easier for investors to deal with the stock.