APICO Wins CMA Nod for 36% Bonus Capital Increase

Bonus issues do not add cash to the company’s balance sheet. The retained earnings line drops by the capitalized amount, and the share capital line rises by the same figure. Net equity stays flat. What changes is the per-share math: earnings per share and book value per share each fall by the dilution factor, all else equal. Traders who track these metrics will need to restate historical comparisons.

The stock closed at SAR 84.90 on the Saudi Exchange before the announcement, giving the company a pre-hike market value of roughly SAR 637 million. The bonus issue does not change the total market capitalization at the theoretical ex-date, though the lower per-share price that results from the adjustment can shift liquidity patterns. Smaller nominal prices tend to widen the pool of retail buyers in the Saudi market.

APICO’s board now holds the standard procedural step: set the eligibility date, the record date, and the distribution schedule. The CMA’s nod removes the regulatory hurdle. Execution timing is the next variable for shareholders.