Learning Academy, a leader in the education and training sector, announced the results of its Extraordinary General Assembly meeting (first meeting) held last Thursday, where shareholders approved a package of key resolutions aimed at strengthening the company’s financial solvency and supporting its expansion plans, most notably the approval of a capital increase and the distribution of cash dividends.
Details of the capital increase and bonus shares
In a move reflecting the company's strong financial position, the General Assembly approved the Board of Directors' recommendation to increase the company's capital by 50%, raising it from SAR 90 million to SAR 135 million. This increase will be achieved by capitalizing SAR 45 million from retained earnings through a bonus share distribution of one share for every two shares held by shareholders.
Under this decision, the company's shares will increase from 90 million to 135 million. The company aims to strengthen its capital base to match its growing business volume and focus on future growth and expansion in line with its strategic objectives.
Cash distributions and board of directors' bonuses
In addition to increasing capital, the General Assembly approved the distribution of cash dividends to shareholders for the fiscal year ending June 30, 2025, totaling SAR 9 million, equivalent to SAR 0.1 per share, representing 10% of the share's par value. Shareholders who own shares on the date of the General Assembly meeting and are registered in the Securities Depository Center's records by the end of the second trading day following the entitlement date are eligible for the dividends, which will be distributed within 15 business days.
The assembly also approved the disbursement of a bonus to the board members in the amount of 230,000 riyals for the year ending on June 30, 2025, and discharged them from liability for the same period.
The economic context and the importance of the education sector
These moves by the Learning Academy come at a time when the education and training sector in Saudi Arabia is witnessing remarkable growth, driven by the goals of Vision 2030, which focuses on developing human capital and enhancing the efficiency of the national workforce. The increase in capital of companies operating in this sector is a positive indicator of its attractiveness as an investment and its ability to generate sustainable cash flows that allow for both reinvestment and profit distribution.
This expansion enhances the company’s ability to acquire a larger market share and develop its educational and training programs to keep pace with the changing demands of the labor market, which positively impacts the local economy by providing high-quality educational outcomes.
Appointment of auditors and governance decisions
Regarding governance and financial oversight, the assembly approved the appointment of “Dr. Mohammed Al-Omari & Partners” as the company’s auditor to examine and audit the financial statements for the fiscal years ending June 30, 2026 and the first half of 2027, with total fees of 398,750 riyals.
The decisions also included approving amendments to a number of internal regulations and policies, including the governance regulation, the audit committee's operating regulations, and the rewards and nominations committee, in addition to adopting new policies related to social responsibility, profit distribution, and competition standards.
Employee Equity Program: Enhancing Corporate Loyalty
In its efforts to retain its human capital, the General Assembly approved the Employee Stock Exchange Program and authorized the Board of Directors to determine its terms. The company was also authorized to purchase up to 800,000 of its own shares for allocation to employees under this program, funded from the company's own resources.
Employee equity programs are effective global tools for promoting employee loyalty and linking employee interests to company financial performance, thereby contributing to increased productivity and sustainable long-term growth.
