Riyadh Mayor: ARDCO-Remat Al-Riyadh Transaction Supports the Municipality's Strategy to Stimulate Investments and Maximize Returns to Achieve Financial Sustainability

Snapshot of the opening bell ceremony

His Highness Prince Faisal bin Abdulaziz bin Ayyaf, Mayor of Riyadh Region and Chairman of Riyadh Development Co. and Remat Al-Riyadh Development Co., rang the opening bell of the Saudi Exchange (Tadawul) today. This was to celebrate the capital increase of Riyadh Development through a share issuance to Remat Al-Riyadh. The ceremony was attended by Mr. Jehad bin Abdulrahman Alkadi, CEO of Riyadh Development, and Mr. Abdullah bin Sulaiman Abudawood, CEO of Remat Al-Riyadh.

Dr. Faisal bin Abdulaziz bin Ayyaf emphasized that this step aligns with the municipality’s strategy to stimulate investments, maximize returns, and achieve financial sustainability amid Riyadh’s unprecedented growth. He added that the city is witnessing significant infrastructure projects and preparations to host major global events.

The Prince also praised the swift approval of the transaction, which reflects investor confidence in the company’s ambitious vision. He indicated that the move strengthens Riyadh Development's role as a strategic partner in national economic growth, contributing to financial sustainability, diversifying its investment portfolio, and developing innovative projects that enhance quality of life in the Saudi capital Riyadh while supporting the goals of Saudi Arabia's Vision 2030.

He added, "This acquisition is aimed to create added value for shareholders, accelerate investment in high-priority sectors, and enrich the urban landscape of the Kingdom, particularly in the Saudi capital."

As part of this milestone transaction, 56,153,041 new ordinary shares, or 24% of the post-increase capital, were allocated to Remat Al-Riyadh, with a nominal value of SAR 10 per share, based on the closing share price on August 29, 2024.

A consortium of financial and legal advisors participated in the deal. Riyadh Development appointed SNB Capital as financial advisor, while PricewaterhouseCoopers (PwC) was the financial advisor of Remat Al-Riyadh. Leading law firms also advised both parties on legal matters. The transaction underwent regulatory procedures, including approvals from the Capital Market Authority and Tadawul, along with other relevant regulatory requirements.