Jabal Omar shareholders to vote on capital increase via debt conversion on Nov. 4

Logo of Jabal Omar Development Co.

Jabal Omar Development Co.'s shareholders will vote on increasing capital through converting debts worth SAR 547.5 million, during an extraordinary general assembly meeting, to be held on Nov. 4, according to a statement to Tadawul.

In September, the Capital Market Authority (CMA) gave the green light for the company's request to increase its capital 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 earlier 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.
 

The share issuance price will be determined based on the closing price of the trading day preceding the EGM date.
 

The move aims to reduce the company's financing burdens, improve its liquidity ratios and credit status, and boost its ability to achieve its growth goals.
 

Shareholders will also vote on amending the company's bylaws accordingly.
 

Moreover, they will vote on endorsing the business and contracts concluded between the company and the Makkah Construction, in which board member Abdulaziz Saud Altubayyeb has an indirect interest.