Riyadh, Saudi Arabia — Mulkia Investment Company confirmed a 20% capital increase for 2025 following shareholder approval at its extraordinary general assembly on July 15. The move raises Mulkia’s capital from SAR 65 million to SAR 78 million through a bonus share distribution.
Mulkia Capital Increase 2025: Bonus Share Details
The company will capitalize SAR 13 million from retained earnings to issue 1.3 million new shares. Based on ownership records as of the EGM date, shareholders will receive one bonus share for every five they hold. The Securities Depository Center (Edaa) will verify eligibility two days after the cut-off.
Mulkia stated that this step will strengthen its financial base and align the capital structure with growth plans. If fractional shares result, they will be grouped and sold on the market. Proceeds will be distributed to eligible shareholders within 30 days.
Strategic Capital Move Aims to Drive Growth and Shareholder Value
According to the company, the increase supports long-term expansion while maintaining financial discipline. It also shows confidence in Mulkia’s strategic direction and aims to reward shareholders without diluting ownership.
In addition, shareholders approved changes to Articles 7 and 8 of the company’s bylaws. These amendments update the capital and subscription terms to reflect the new share structure.
This capital strategy follows a growing trend among Saudi-listed firms. More companies use retained earnings to fund bonus shares, reinforcing investor loyalty and avoiding external financing.
THE SAUDI STANDARD’S VIEW: Mulkia’s Capital Hike Reflects Confidence and Strategic Readiness
Mulkia Investment Company’s 20% capital increase through bonus shares demonstrates a balanced growth and shareholder return approach.
- Capitalizing SAR 13 million in retained earnings reflects strong internal reserves and responsible profit management. It also rewards investors while conserving cash for future use.
- The new SAR 78 million capital base enhances Mulkia’s ability to scale operations and launch competitive investment offerings in a growing asset management sector.
- This move aligns with favorable market conditions and ongoing financial sector reforms under Vision 2030. Mulkia is well-positioned to support private sector growth and national investment goals.
- Updating key bylaws shows governance maturity and readiness to support future initiatives with a more agile legal framework.
In summary, Mulkia’s capital increase signals ambition, strength, and alignment with the Kingdom’s financial transformation. As more firms adopt similar strategies, Riyadh’s role as a regional hub of disciplined investment management continues to grow.
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