The Saudi Capital Market Authority (CMA) approved an 8.98% capital increase for Cinomi Centers, elevating paid-in capital from SAR 4.75 billion to SAR 5.18 billion via a bonus share issuance of one share for every 12 shares held, funded through a SAR 426.6 million capitalization of retained earnings.
The Bottom Line
- Capital Expansion: Total share count rises by 42.66 million, moving from 475 million to 517.66 million ordinary shares.
- Funding Mechanism: The expansion relies on internal balance sheet capitalization, drawing SAR 426.6 million from retained earnings.
- Employee Alignment: Out of the total bonus issuance, 3.08 million shares are specifically ring-fenced for an upcoming employee stock program designed to motivate employees in the long term.
Unpacking the Balance Sheet Mechanics
Here is the math behind the regulatory filing. According to disclosures reviewed by market authorities, Cenomi Centers—legally registered as Arabian Centres Co.—will capitalize SAR 426.6 million of its accumulated retained earnings to execute this transaction. By transferring these reserves into permanent capital, the firm increases its total shares outstanding from 475 million to 517.66 million.
Eligible investors will receive one bonus share for every 12 shares currently held. Out of the 42.66 million newly minted shares, 39.58 million units go directly to qualifying shareholders listed with the Securities Depository Center (Edaa) by the end of the second trading day following the yet-to-be-announced record date.
The remaining 3.08 million shares are carved out for a dedicated employee stock incentive plan. Here is the breakdown of the capital restructuring:
| Metric | Pre-Increase | Post-Increase |
|---|---|---|
| Paid-in Capital | SAR 4.75 Billion | SAR 5.18 Billion |
| Total Share Count | 475 million | 517.66 Million |
| Bonus Allocation | – | 39.58 Million Shares |
| Employee Pool | – | 3.08 Million Shares |
| Funding Source | – | SAR 426.6 Million Retained Earnings |
Regulatory Timeline and Governance Hurdles
The Capital Market Authority (CMA) stamped its formal approval on the transaction, but strict execution timelines now apply. Management must convene an Extraordinary General Assembly (EGA) within six months of the regulatory green light to secure shareholder voting thresholds.
Once the EGA clears the resolution, the board of directors will officially set the eligibility date. Shareholders appearing in the Edaa registry at the close of the second trading day following that date will receive their allotments automatically.
Strategic Intent in Saudi Retail Real Estate
Cenomi Centers is reclassifying existing equity reserves.
The inclusion of an employee share incentive scheme addresses human capital retention. The company intends to use the program to motivate employees in the long term.
