Cenomi Centers Plans 8.98% Capital Hike via Bonus Share Issue

The board of Arabian Centres Co. (Cenomi Centers) recommended an 8.98% capital increase, raising the company's capital from SAR 4.75 billion to SAR 5.18 billion, according to a Tadawul filing. The increase will be funded through a bonus share issue, with shareholders receiving one share for every 11.14 shares held.

The move comes as the Riyadh-based shopping mall operator looks to strengthen its equity base. Cenomi Centers, which owns and operates 20 retail properties across Saudi Arabia, has been expanding its portfolio in recent years, adding new malls and mixed-use developments in major cities.

Shareholders of record as of the general assembly meeting date will be eligible for the bonus shares. The company said the capital increase aims to reward existing shareholders and improve the stock's liquidity profile.

Cenomi Centers reported a net profit of SAR 412 million for the first nine months of 2024, up from SAR 378 million in the same period a year earlier. Revenue rose 8% to SAR 1.2 billion, driven by higher occupancy rates and rental income from new properties.

The stock has gained roughly 12% year-to-date, outperforming the broader Saudi market. The Tadawul All Share Index is up about 3% over the same period.

A general assembly meeting will be called to vote on the proposal. The company did not specify a date for the meeting.