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Arabian Internet and Communications Services Company (solutions, Saudi Exchange ticker 7202) proposed one bonus share for each eligible share. The Capital Market Authority (CMA) approved the request on 14 May 2026, and Argaam reported that shareholders approved it at a 6 October 2026 meeting. The announced terms would double the number of shares held by an eligible investor, but they do not by themselves establish a gain or change in the company’s underlying operations. The exact operational eligibility date and implementation schedule should be checked in an official corporate-action notice.
What does Arabian Internet’s bonus issue mean for shareholders?
Under the announced one-for-one ratio, an eligible shareholder is entitled to one additional share for each existing share held. For example, 10 eligible shares correspond to 10 additional shares, or 20 shares after the grant is processed. This is the arithmetic of the announced ratio, not a statement about the value of a particular account.
The proposed increase is funded by transferring SAR 1.2 billion from retained earnings to the company’s capital. It is not described in the announcement as a cash payment by shareholders to the company.
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How the share count and capital would change
| Measure | Before | After the proposed increase |
|---|---|---|
| Stated capital | SAR 1.2 billion | SAR 2.4 billion |
| Shares | 120 million | 240 million |
| Increase | 100%, or 120 million additional shares | |
| Funding source | SAR 1.2 billion transferred from retained earnings |
These are figures disclosed by the company and regulator for the proposed increase, not independent market statistics. A larger share count alone does not show that an investor has earned a gain, and the announcement does not establish a specific market-price movement.
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What approvals were reported by 13 October 2026?
- 13 April 2026: The company disclosed its board’s recommendation for a 100% capital increase through one bonus share for each share held at the eligibility date. Saudi Exchange issuer announcement.
- 14 May 2026: The CMA announced approval of the capital increase request. Its notice said an extraordinary general assembly (EGM) was to be held within six months of approval and that applicable regulatory requirements and laws had to be satisfied. CMA approval announcement.
- 13 August 2026: The Saudi Exchange published an EGM meeting notice scheduling the meeting for 6 October and restating the proposed ratio, funding source and eligibility mechanics. Saudi Exchange EGM notice.
- 7 October 2026: Argaam reported that shareholders approved the increase at the 6 October meeting. This is a secondary report of the vote result; the official meeting notice establishes the scheduled meeting and proposed terms, not the final vote outcome. Argaam report.
Who qualifies, and when?
The announced rule says a shareholder must own shares by the end of the trading day of the EGM and be registered in the Depository Center’s shareholder register by the end of the second trading day after the meeting. The meeting notice gives the meeting date as 6 October 2026, but the reviewed official notices do not establish a finalized operational eligibility date or implementation schedule.
Do not infer a record date or assume that distribution has been completed from the meeting date alone. Check an official company or Saudi Exchange corporate-action notice for the finalized date and schedule before relying on eligibility for an account.
How fractional entitlements are handled
Under the announced plan, fractional shares are pooled and sold at market price. The proceeds are distributed to entitled holders according to their respective shares within no more than 30 days from determination of each holder’s entitlement. The announcement describes cash proceeds from the sale of fractional entitlements; it does not promise a particular amount.
Why the company says it proposed the increase
The company said the increase is intended to support its growth and expansion strategy, diversify investments and pursue expected opportunities in the IT sector in Saudi Arabia and the region. It also described maximizing shareholder returns as part of its rationale. Those statements are management’s stated aims, not a guaranteed outcome or an independent forecast.
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