Riyadh – Mubasher: Maharah Human Resources Company announced that its shareholders approved a significant 26.32% capital increase during an Extraordinary General Meeting (EGM) held on 29 June 2026.
The capital hike, which will be executed through the issuance of bonus shares, aims to strengthen the company’s financial position and support its long-term strategic expansion plans.
During the session, shareholders also ratified the financial results for 2025, appointed external auditors, and authorized the board to distribute interim dividends for 2026.
The meeting, which took place at the company’s headquarters in Riyadh and via electronic platforms, was the second assembly called after the first session failed to reach a legal quorum. The second meeting was successfully convened with an attendance rate of 43.55% of the company’s share capital.
The centerpiece of the assembly was the approval of the board of directors' recommendation to increase the company’s capital from SAR 475 million to SAR 600 million.
This increase will be facilitated by the issuance of 125 million bonus shares, distributed at a rate of approximately 0.2632 shares for every existing share held, which effectively translates to five new shares for every 19 shares owned.
To fund this capitalization, Maharah will utilize its entire statutory reserve of SAR 103.06 million, supplemented by SAR 21.94 million from its retained earnings.
According to the disclosure, the eligibility for these bonus shares is granted to shareholders registered in the company’s books at the Securities Depository Center (Edaa) by the end of the second trading day following the date of the EGM.
In the event of fractional shares, the company will aggregate these fractions into a single portfolio to be sold at market price, with proceeds distributed to eligible shareholders within 30 days.
Beyond the capital restructuring, the assembly approved several key financial and governance items. Shareholders reviewed and discussed the board and auditor reports for the fiscal year ending 31 December 2025, and officially discharged the board members from liability for that period.
KPMG Professional Services was appointed as the external auditor to review and audit the financial statements for the second and third quarters of 2026, the full 2025 annual results, and the first quarter of 2027, for a total fee of SAR 1.50 million.
In a move to provide consistent shareholder returns, the assembly authorized the board of directors to distribute interim dividends on a semi-annual or quarterly basis for 2026.
Furthermore, the meeting approved board remuneration totaling SAR 2.45 million for 2025, alongside additional performance-based bonuses for specific directors totaling SAR 525,000.
The assembly also ratified a series of related-party transactions involving labor service contracts with several entities, including the Saudi Health Systems Company, Care Shield Holding Company, and the National Water Company, among others. These contracts, valued at various amounts ranging from approximately SAR 65,000 to SAR 11.6 million, were confirmed to have been conducted without preferential terms.
Finally, shareholders approved extensive amendments to the company’s Articles of Association. These changes touched upon various articles governing the company’s objectives, share trading, board powers, and the procedures for general assemblies and committee reporting, ensuring the company’s regulatory framework remains aligned with its updated capital structure and the latest Saudi Companies Law.
