Riyadh – Mubasher: The Capital Market Authority (CMA) of Saudi Arabia has officially granted approval for Arabian Internet and Communications Services Company (solutions) to proceed with a 100% capital increase through the issuance of bonus shares.
The regulatory decision allows the company to double its current share capital to SAR 2.40 billion from SAR 1.20 billion, utilizing its internal reserves to strengthen its formal equity base, according to an official statement.
The capital hike will be executed by granting one bonus share for every existing share currently held by investors, building on the board’s recommendation in April 2026.
This one-for-one issuance ratio will result in the creation of 120 million new shares, effectively increasing the total number of the company’s outstanding shares to 240 million.
This expansion of the share capital will be financed entirely through the capitalization of the company’s retained earnings.
By opting for this method, solutions is able to increase its formal capital without requiring shareholders to provide additional cash contributions, in a step that effectively converts a portion of the company’s accumulated profits into permanent equity, which can enhance the financial profile of the organization as it appears on the balance sheet.
Regarding shareholder eligibility, the CMA specified that the bonus shares will be allocated to those investors registered in the company’s shareholders registry at the Security Depository Center. The eligibility window is set at the closing of the second trading day following the due date.
The timeline for the share distribution is governed by the standard settlement cycles common in the Saudi market. By specifying that eligibility is determined at the close of the second trading day after the due date, the regulator ensures that all market transactions conducted up to the due date are properly settled and reflected in the official records.
While the exact due date has not yet been finalized, the company’s board of directors is tasked with determining this date and communicating it to the market in a subsequent announcement.
In the first quarter (Q1) of 2026, solutions generated net profits worth SAR 370 million and revenue of SAR 3 billion.
