The board of directors of Fish Fash Food Factory, listed on the Nomu Parallel Market, announced its recommendation to increase the company's capital by 50%, a strategic move aimed at strengthening the company's financial position and supporting its future expansion plans. This decision was made during the board meeting held on January 11, 2026, where it was decided that the increase would be implemented by capitalizing a portion of retained earnings and distributing them as bonus shares to shareholders.
Details of the capital increase and granted shares
According to a statement published on the Saudi Stock Exchange (Tadawul) website on Monday, the company's capital will increase from SAR 11.3 million to SAR 16.95 million as a result of this recommendation. This will lead to an increase in the number of issued shares from 11.3 million to 16.95 million. The mechanism for the increase is to grant one bonus share for every two shares held by shareholders at the time of entitlement.
This increase will be financed by capitalizing SAR 5.65 million from the company’s retained earnings, which reflects the strength of the company’s financial position and its ability to convert its accumulated profits into permanent capital that supports its operational activities.
The importance of the step and the context of the Saudi market
This move comes as many companies listed on the Saudi Stock Exchange, particularly on the parallel market (Nomu), are seeking to strengthen their capital bases to meet economic expectations and expand their operations. Increasing capital through bonus shares is a positive signal for investors, as it means the company is reinvesting its profits internally instead of distributing them as cash, thus providing the necessary liquidity to finance current and future projects without resorting to borrowing or incurring additional financing costs.
This measure also contributes to increasing the number of free shares available for trading, which may positively affect the daily liquidity rates of the share, and make the market price of the share more attractive to a wider segment of investors after the price adjustment process that follows the general assembly.
Due date and how to handle fractions
The company clarified that the entitlement to bonus shares will be for shareholders who own shares at the end of trading on the day of the Extraordinary General Assembly meeting (the date of which will be determined later), and who are registered in the company’s shareholder register at the Securities Depository Center (Edaa) at the end of the second trading day following the entitlement date.
Regarding any fractional shares resulting from the distribution, the Board of Directors confirmed that these will be consolidated into a single portfolio for all shareholders and then sold at the prevailing market price. The proceeds from this sale will be distributed to eligible shareholders, each according to their respective entitlement, within 30 days of the date the eligible shares are determined.
Procedures and required approvals
It should be noted that this proposed grant is still subject to obtaining official approvals from the competent regulatory authorities, most notably the Saudi Capital Market Authority, in addition to the approval of the Extraordinary General Assembly of the company’s shareholders to increase the capital and amend the Articles of Association to be in line with the new number of shares.
