CMA approves Jabal Omar capital increase via debt conversion

Logo of Jabal Omar Development Co.

The Capital Market Authority (CMA) gave the green light for Jabal Omar Development Co.'s request to increase its capital through converting debts worth SAR 547.5 million, according to the market regulator's website.

The move is conditional on the extraordinary general meeting's (EGM) approval and completion of the necessary procedures related to the applicable regulations.

For more news on listed companies

A shareholders' circular will be published clarifying reasons for the capital increase and its objectives within sufficient time prior to the EGM to enable shareholders to vote on the capital increase through debt conversion.

In December 2023, the developer's board of directors recommended increasing capital through converting SAR 547.5 million worth of debt into new shares for creditors, according to data available with Argaam.

Jabal Omar signed debt settlement agreements with Central District Cooling Co. and Makkah Construction and Development Co. to convert debt into new shares through a proposed capital increase.