First Avenue (9610) Approves a 46.34% Bonus Capital Increase as TASI Closes at a One-Month High

First Avenue for Real Estate Development (Nomu: 9610) won shareholder approval for a 46.34 percent capital increase through bonus shares, lifting capital from SAR 205 million to SAR 300 million, with the new shares set to land in investor accounts on June 18. The exchange set the adjusted reference price at SAR 4.73 for June 16.

Like any bonus issue, this creates no new value on day one. The company capitalizes SAR 95 million from its share premium account, the share count rises by about 95 million, and the price per share is adjusted down to match. What changes is the optics and the base. The board framed it as strengthening the capital base in line with growth, which is the language of a company that expects to keep earning on a larger capital number.

The fundamentals behind it

First Avenue is not stretching to do this. It earned SAR 110.9 million in 2025 on SAR 326.6 million of revenue, a net margin near 34 percent, with profit up 87 percent on the year. That kind of earnings growth is what lets a developer expand its share count without crushing earnings per share, and it is the real test to watch after the issue. A recent SAR 2 billion development project in Makkah, alongside Al Majdiah, adds to the pipeline behind the confidence.

The sector read

Bonus issues have become a recurring way for TASI and Nomu real estate developers to signal confidence and broaden their shareholder base on the back of strong Vision 2030 era margins. First Avenue fits the pattern rather than breaking new ground. For the wider market, the day belonged to the index, which rose 0.45 percent to 11,145, its highest close in about a month, with Alinma Bank moving on news it would redeem SAR 5 billion of AT1 sukuk and Bupa Arabia up more than 5 percent.

The signal to watch is whether First Avenue holds earnings per share after the larger share count. At 87 percent profit growth, it has the runway to.