Mohammed Hadi Al-Rashid & Partners, listed on the Saudi Stock Exchange, announced the completion of the sale of fractional shares resulting from the company's capital increase and the commencement of depositing the proceeds into shareholders' accounts. This step fulfills the regulatory procedures following the approval of the Extraordinary General Assembly held on December 4, 2025.
Details of the fractional share sale process
In an official statement published on the Saudi Stock Exchange (Tadawul) website on Thursday, the company disclosed the financial details of the sale, revealing that a total of 110 fractional shares were sold. The total proceeds from the sale amounted to SAR 8,576, with an average selling price of SAR 78.10 per share.
The company confirmed in its statement that it has completed the procedures for depositing the fractional amounts directly into the current accounts of the eligible shareholders, which are linked to their investment portfolios containing shares of "Mohammed Hadi Al-Rashid & Partners" at various local banks in the Kingdom of Saudi Arabia.
The mechanism for dealing with fractional shares in the Saudi market
The sale of fractional shares is a standard regulatory procedure in the Saudi financial market when companies increase their capital by issuing bonus shares. These fractional shares arise when the increase does not perfectly match the number of shares held by each shareholder, resulting in portions of the share that cannot be distributed as complete securities. According to applicable regulations, the company consolidates these fractional shares into a single portfolio, then sells them at the market price and distributes the proceeds to eligible shareholders according to their respective holdings. This reflects the company's commitment to preserving the rights of all shareholders, no matter how small.
The importance of increasing capital for national companies
Capital increases are of paramount importance to publicly traded companies, as they typically aim to strengthen the company's financial solvency and support its future expansion plans. For companies operating in vital sectors such as basic materials and construction, in which Al-Rashid Company is active, bolstering the capital base contributes to financing existing projects and seizing new investment opportunities, which positively impacts the company's sustainable growth.
Compliance and transparency in the financial market
Al-Rasheed Company's announcement of the sale and deposit details reflects its commitment to the transparency and disclosure standards mandated by the Capital Market Authority and the Saudi Stock Exchange (Tadawul). The swift deposit of the proceeds contributes to enhancing investor confidence in the company's management and operational efficiency. These measures are part of the Kingdom's evolving investment environment, which aims to safeguard the rights of investors and streamline financial procedures by automating deposit processes and linking them directly to investment portfolios.
