The Capital Market Authority has approved a capital increase at Academy of Learning Company that hands shareholders one new share for every six they already hold, funded entirely from the education group's retained earnings. The decision was published on 18 October 2026.
The increase lifts the company's capital from 135,000,000 riyals to 157,500,000 riyals, an addition of 22,500,000 riyals. The share count rises on the same arithmetic, from 135,000,000 shares to 157,500,000 shares, with 22,500,000 new shares created. The 22,500,000 riyals is transferred out of the retained earnings account and into capital, so no new money enters the business and no existing holder is diluted. Entitlement will be fixed by reference to the shareholder register at the close of the second trading day after a due date that the board has yet to set. The regulator attached two conditions: the extraordinary general assembly must be convened within six months of the approval, and the company must satisfy all other applicable regulatory requirements.
Academy of Learning Company is listed on Nomu, the parallel market that sits alongside the Kingdom's main board and carries lighter listing requirements and a qualified investor base.
A bonus issue is one of the few corporate actions that changes nothing economic and a good deal behaviourally. Each holder owns the same proportion of the same business the day after as the day before, and the quoted price adjusts mechanically for the larger count. What a board is really doing is converting retained profits into permanent capital and, in a parallel market where free float and daily turnover are often thin, lowering the price per share to widen the pool of buyers. Directors should be plain with their own shareholders that the second of those is the operative motive, because presenting a bonus issue as a reward invites the wrong expectations at the next set of results.
For readers tracking Nomu issuers, the signal worth extracting is the source of the money. Capitalising retained earnings is only available to a company that has accumulated them, which separates this action sharply from the loss absorbing capital reductions moving through the same regulator's approval queue this autumn. Analysts and investment committees should treat the mechanism rather than the headline as the information, because a bonus issue funded from retained earnings is a statement that the board expects to keep funding growth internally. The points to diarise are the board's determination of the due date and the extraordinary general assembly itself, since neither the entitlement nor the increase is final until the assembly has voted.
