Arabian Internet and Communications Services Company (solutions, Saudi Exchange ticker 7202) has a planned one-for-one bonus issue: an eligible holder is due one additional share for each share held. The Capital Market Authority (CMA) approved the capital-increase request in May 2026, and Argaam reported that shareholders approved it at the company’s 6 October 2026 extraordinary general assembly. The exact operational eligibility date and distribution schedule should be checked in an official implementation notice.
What Arabian Internet announced
On 13 April 2026, Arabian Internet disclosed its board’s recommendation to increase capital by 100% by issuing one bonus share for every eligible share held. The plan transfers SAR 1.2 billion from retained earnings into capital. The company’s stated capital would rise from SAR 1.2 billion to SAR 2.4 billion, while its share count would increase from 120 million to 240 million, according to the issuer’s 13 April disclosure to the Saudi Exchange.
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This is a capitalization of retained earnings, not a cash payment by shareholders to the company under the announced terms. The CMA’s 14 May approval notice likewise described the request as adding 120 million shares and increasing capital from SAR 1.2 billion to SAR 2.4 billion; it said the extraordinary general assembly was to be held within six months and that applicable regulatory requirements and laws must be met. See the CMA announcement.
What the one-for-one ratio means for a shareholder
For each eligible existing share, the announced ratio provides one additional share. For example, a holder with 10 eligible shares would be entitled to 10 bonus shares, making 20 shares once the grant is processed. This example explains the ratio; it does not predict the value of an account.
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A bonus issue increases the number of shares, but that arithmetic alone does not mean an investor has made a gain, that the business has changed, or that the market price will move by a particular amount. The announcement does not guarantee a return.
Approval status as of 13 October 2026
- Regulatory approval: The CMA announced approval of the capital-increase request on 14 May 2026.
- Assembly scheduled: The Saudi Exchange meeting notice scheduled the extraordinary general assembly for 6 October 2026 and restated the proposed 1:1 ratio and retained-earnings funding. The meeting notice is not itself a vote result.
- Shareholder vote: Argaam reported on 7 October that shareholders approved the 100% increase at the 6 October meeting. This is a secondary report of the result; the official meeting notice cited above set out the proposed terms. See Argaam’s report.
These announcements establish the CMA approval and a reported shareholder approval, but they do not establish that the shares have already been credited or provide a finalized operational timetable.
Eligibility, dates and fractional entitlements
The announced eligibility mechanics require a shareholder to own the shares by the end of trading on the day of the extraordinary general assembly and to be registered in the Depository Center’s shareholder register by the end of the second trading day after the meeting. The issuer’s initial disclosure and the Saudi Exchange meeting notice describe this rule, but the reviewed notices do not establish a finalized calendar eligibility date or implementation schedule. Check a later official company or Saudi Exchange corporate-action notice for the operative date and processing details rather than assuming that the meeting date alone is the record date.
Under the announced plan, fractional entitlements are to be pooled, sold at market price, and the proceeds distributed among entitled holders according to their respective shares. The stated deadline is no more than 30 days from determination of each holder’s entitlement.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the company says it is increasing capital
Management said the increase would support growth and expansion, diversify investments, and pursue expected opportunities in the IT sector in Saudi Arabia and the region. The issuer described its aim as “maximizing its shareholders’ return” through those efforts. That is the company’s stated rationale, not an independently verified forecast or a promise that the strategy will produce a particular return.
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