Human Resources Company, one of the leading companies in the human resources services sector in the Kingdom of Saudi Arabia, announced that the Extraordinary General Assembly of its shareholders approved the Board of Directors’ recommendation to increase the company’s capital by 33.3%.
According to a statement released by the company on the Saudi Stock Exchange (Tadawul) website, the company's capital will increase from SAR 150 million to SAR 200 million. This SAR 50 million increase will be funded by capitalizing this amount from retained earnings, reflecting the company's strong financial position and management's confidence in its future performance.
Details of the capital increase
The capital increase will be achieved by issuing bonus shares to registered shareholders at a rate of one new share for every three shares held. Consequently, the total number of company shares will increase from 15 million to 20 million, while maintaining the par value of the share at SAR 10.
General context and importance of the decision
This move comes at a time when the Saudi economy is undergoing massive structural transformations in line with the Kingdom’s Vision 2030, which aims to diversify income sources and develop non-oil sectors. The human resources sector plays a pivotal role in supporting these transformations by providing qualified talent and skilled personnel for major projects and emerging sectors. Al-Mawarid Company, listed on the main market, is a key player in this field, offering integrated recruitment and workforce management solutions to numerous companies across various vital sectors.
Expected impact on the company and the market
The capital increase is expected to strengthen the company's capital base and support its future expansion plans, both through geographic expansion within the Kingdom and through investment in modern technologies to enhance the quality of its services. This move also sends a positive message to investors, reflecting the company's ability to generate sustainable profits and reinvest them to maximize long-term shareholder value. On the market level, this decision enhances the attractiveness of the services sector on Tadawul and highlights the growth opportunities available to companies that keep pace with the Kingdom's economic development.
Eligibility mechanism and share distribution
The company clarified that the bonus shares will be allocated to shareholders who own shares at the close of trading on the day of the Extraordinary General Assembly meeting and are registered in the company's shareholder register at the Securities Depository Center Company (Edaa) at the end of the second trading day following the entitlement date. In the event of fractional shares, these will be consolidated into a single portfolio and sold at the market price, with the proceeds distributed to eligible shareholders according to their respective shares within a period not exceeding 30 days.
The assembly also approved at the same meeting the amendment of Articles (6) and (7) of the company’s basic system, relating to capital and subscription to shares, to reflect the new increase in the capital structure.
