Multi Business Group ratifies 200% capital increase through bonus shares
MULTI BUSINESS
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Riyadh – Mubasher: Multi Business Group Company has received shareholder approval for a significant capital restructuring following its Extraordinary General Assembly meeting held on 25 June 2026.
The company’s investors voted in favor of a 200% capital increase which will be executed through the issuance of bonus shares.
This strategic move, aimed at strengthening the firm’s financial base to support expansion and ongoing projects, will see the company’s share capital triple from SAR 15 million to SAR 45 million, according to a bourse filing.
Under the approved proposal, Multi Business Group will capitalize SAR 30 million from its share premium account to fund the increase. This process involves the distribution of two bonus shares for every one existing share held by investors.
Consequently, the total number of outstanding shares will rise from 15 million to 45 million shares. The company clarified that the primary objective of this capital injection is to fortify its capital base, thereby facilitating the execution of current and future projects while aligning its financial structure with long-term growth and expansion strategies.
Eligibility for the bonus shares is restricted to shareholders registered in the company’s records at the Securities Depository Center (Edaa) by the end of the second trading day following the date of the Extraordinary General Assembly.
The company also addressed the handling of fractional shares, noting that any resulting fractions will be consolidated into a single portfolio and sold at market price.
The proceeds from such sales will be distributed to eligible shareholders on a pro-rata basis within a period not exceeding 30 days from the date the allocations are finalized.
Beyond the capital increase, the assembly approved several statutory and governance updates. Shareholders voted to amend Article 7 and Article 8 of the Company’s Bylaws, which pertain to capital and share subscription, respectively, to reflect the new share structure.
Additionally, an amendment to Article 4 regarding the company’s corporate purposes was approved.
On the governance front, the assembly ratified the work regulations for the Remuneration and Nominations Committee.
Furthermore, shareholders approved updated policies regarding the remuneration of Board members, committee members, and executive management, ensuring that the company’s internal frameworks remain compliant with evolving regulatory requirements.
The approval marks a pivotal shift for Multi Business Group as it transitions into a larger capital bracket on the Saudi exchange.
By utilizing its share premium reserves for this issuance, the company aims to improve liquidity for its shares while retaining cash for operational requirements.
Source: Mubasher Source: {{details.article.source}}