Capitalizing Profits and Bonus Share Distributions: Nomu Market Companies Strengthen Their Financial Solvency by SAR 675 Million in H1 2026
Capitalizing Retained Earnings and Bonus Share Distributions: Nomu Market Companies Strengthen Their Capital Base by SAR 680 Million in H1 2026
Saudi Arabia’s parallel market, Nomu, witnessed significant capital activity during the first half of 2026, as 15 listed companies moved to strengthen their capital bases through bonus shares.
Together, these companies increased their share capital by approximately SAR 680 million, in a strategic move aimed at supporting logistics and operational expansion plans and capitalizing on the Kingdom’s accelerating economic growth.
The combined capital of the 15 companies rose from approximately SAR 926.6 million to SAR 1.61 billion, representing an overall increase of about 73%.
Strategic Expansion and Liquidity Preservation Drive Capitalization
Official company disclosures indicate that the primary drivers behind these capitalizations were supporting expansion and growth plans, strengthening financial positions, and enhancing liquidity and solvency.
Rather than making cash distributions that could reduce available liquidity—or relying on borrowing at relatively high costs—the companies opted to retain cash within their businesses and convert retained earnings, reserves and share premiums into additional shares distributed to shareholders.
Capital Increases: Asas Makeen and Multi Business Group Lead
Capital increases varied significantly among the companies, with the highest percentage increases reaching 200%.
Key highlights include:
- Largest increase in both percentage and value: Asas Makeen Real Estate Development & Investment led the market with a SAR 200 million increase, representing a 200% increase, taking its capital from SAR 100 million to SAR 300 million.
- Multi Business Group also increased its capital by 200%, from SAR 15 million to SAR 45 million.
- Largest post-increase capital: Asas Makeen and Aljada First Real Estate Development ranked highest, with each reaching SAR 300 million in capital after the increase.
- Capital doubled: Nabaa Health Medical Services and Future Vision for Health Training doubled their capital, recording 100% increases.
Funding Sources: Retained Earnings Dominate, While Share Premiums Also Play a Role
The funding structures behind the capital increases varied according to each company's financial position.
Full reliance on retained earnings:
Several companies funded their increases entirely through retained earnings, including Al-Rashed Industrial (SAR 40 million), Learning Academy (SAR 45 million), Edarat (SAR 25.2 million), and Knowledge Net (SAR 17.5 million).
Reliance on share premiums:
Aljada First stood out by financing its SAR 95 million increase entirely from its share premium account. Multi Business Group likewise used SAR 30 million from its share premium.
Mixed funding:
Some companies combined different sources. Atlas Elevators used a combination of share premium and retained earnings, while Future Vision combined retained earnings with IPO proceeds. Nabaa Health used retained earnings together with reserves.
Nomu-Listed Companies That Increased Capital Through Bonus Shares in H1 2026
SAR million
Company | Capital Before Increase | Increase | Capital After Increase | Increase % |
|---|---|---|---|---|
Asas Makeen | 100.0 | 200.0 | 300.0 | 200% |
Aljada First Real Estate Development | 205.0 | 95.0 | 300.0 | 46% |
Nabaa Health Medical Services | 105.0 | 105.0 | 210.0 | 100% |
Learning Academy | 90.0 | 45.0 | 135.0 | 50% |
Al-Rashed Industrial | 80.0 | 40.0 | 120.0 | 50% |
Atlas Elevators | 60.0 | 30.0 | 90.0 | 50% |
Naseej Technology | 50.0 | 27.3 | 77.3 | 55% |
Edarat Communications & Information Technology | 50.4 | 25.2 | 75.6 | 50% |
Networkers Saudi Services | 60.0 | 15.0 | 75.0 | 25% |
Almunif Trading, Industry, Agriculture & Contracting | 38.0 | 19.0 | 57.0 | 50% |
Knowledge Net Computer – Nologynt | 35.0 | 17.5 | 52.5 | 50% |
Multi Business Group | 15.0 | 30.0 | 45.0 | 200% |
Digital Research Company (DRC) | 16.9 | 12.7 | 29.5 | 75% |
Future Vision for Health Training | 10.0 | 10.0 | 20.0 | 100% |
Fash Fash Factory for Food Products | 11.3 | 8.5 | 19.8 | 75% |
Total | 926.6 | 680.1 | 1,606.7 | 73% |
A Sign of Strengthening Balance Sheets
The wave of bonus-share capitalizations among Nomu-listed companies during H1 2026 highlights a broader trend toward strengthening balance sheets while preserving cash within businesses.
For shareholders, bonus shares do not represent a direct cash inflow; rather, they increase the number of shares outstanding while capitalizing amounts already held within the company. The strategic value lies in allowing companies to retain financial resources, strengthen their capital structures and fund future expansion without relying as heavily on external financing.
Overall, the SAR 680 million increase in capital reflects the growing emphasis among smaller Saudi-listed companies on building stronger financial foundations and preparing for the next stage of expansion.