Riyadh, Saudi Arabia — Tharwah Human Resources Company has proposed a 10% capital increase in 2025, raising its capital from SAR 23.52 million to SAR 25.88 million. The SAR 2.352 million hike will be funded using the company’s share premium reserve, pending approval by the Extraordinary General Assembly and relevant regulators.
Tharwah Capital Increase 2025 Funded via Share Premium Allocation
According to a filing on Tadawul, Tharwah will draw on its SAR 37.43 million share premium reserve, based on audited financials as of December 31, 2024. The number of shares will grow from 4,705,735 to 5,176,308.
All 470,573 new shares will be held as treasury shares. Of these, 95,804 shares are reserved for future acquisitions, while 374,769 are designated for employee stock incentive programs. The move aims to support talent retention and flexibility in potential mergers or acquisitions.
Tharwah Share Capital Hike and Dilution Implications
Tharwah stated that although the total number of shares will rise, shareholders’ ownership percentages will decrease by 10%. However, the number of shares each investor holds will remain the same. This proportional adjustment is standard when treasury shares are issued without a rights offering.
The capital increase aligns with Tharwah’s strategy to strengthen its workforce through stock-based incentives while remaining agile in the competitive HR and staffing sector.
Cancellation of Earlier Share Buyback Plan
In a separate announcement, Tharwah cancelled a May 18, 2025, board proposal to repurchase up to 200,000 shares. The company explained that regulatory compliance concerns led to the cancellation. It also noted that the new treasury share plan offers a more flexible and compliant path forward.
If approved, the capital increase will enhance Tharwah’s financial foundation and align with modern governance practices. These include promoting equity-based rewards and staying prepared for strategic acquisitions.
The Saudi Standard’s View: Tharwah’s Capital Strategy Reflects Governance Maturity and Talent Focus
Tharwah’s plan to raise capital through share premium reserves reflects a smart and forward-looking approach. The company is using its balance sheet strength to drive growth and build long-term value. This strategy highlights strong financial planning and a commitment to good governance on the Saudi exchange.
Capital Increase Backed by Internal Reserves
The SAR 2.35 million capital hike draws entirely from a SAR 37.4 million share premium reserve. This choice shows fiscal discipline. Instead of adding debt or issuing new shares to the public, Tharwah is funding plans from within. This protects liquidity and keeps operations stable.
Strategic Use of Treasury Shares Adds Flexibility
By allocating 470,573 shares as treasury stock, Tharwah is increasing flexibility. Nearly 375,000 shares will support employee stock programs. The rest are set aside for future acquisitions. This shows a shift toward talent-driven growth and adaptable capital planning.
Clear Shareholder Communication and Compliance
Tharwah has been open about how the capital increase affects shareholders. While ownership ratios will change, no investor loses shares. By cancelling a previous buyback plan for compliance reasons, the company shows it is committed to transparency and sound regulatory practices.
Boosting Human Capital in Line with Vision 2030
Using capital to fund employee incentives reflects Tharwah’s role as a modern employer. The move supports Vision 2030’s goals for workforce development, talent retention, and private-sector leadership in the labor market.
This capital strategy is more than a financial adjustment. It’s a governance-driven plan to fuel growth, meet regulatory expectations, and attract top talent. In Saudi Arabia’s evolving public market landscape, Tharwah shows the leadership expected from the next generation of listed firms.
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