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Shareholders of Mulkia Investment Co. approved a 15.38% capital increase through a bonus share issue at an extraordinary general meeting (EGM) on July 15. The plan involves issuing one bonus share for every 6.5 shares held, raising the company's capital from SAR 78 million to SAR 90 million. The funds will be sourced from retained earnings of SAR 12 million. The record date for entitlement is set for July 15, 2026, with fractional shares to be pooled and sold, proceeds distributed within 30 days. Additionally, shareholders approved an employee stock incentive program (ESIP) to be managed by the board.
This capital increase aims to strengthen Mulkia's financial position and support its growth strategy. For traders, the bonus issue may temporarily dilute earnings per share (EPS) but could enhance liquidity and attract long-term investors seeking value. The move also signals management's confidence in future operations, which could stabilize investor sentiment in the Saudi equity market.
For MENA investors, the decision reflects a strategic approach to capital allocation in the Gulf's investment sector. Traders should monitor the stock's performance post-announcement and track the implementation of the ESIP, as both could influence market perception. The record date in 2026 raises questions about execution timelines, warranting further clarification from the company.
