Logo of Riyadh Development Co.
The Capital Market Authority (CMA) gave today, Jan. 7, the greenlight to Riyadh Development Co.’s application to raise its capital from SAR 1.78 billion to SAR 2.34 billion by issuing 56.15 million ordinary shares.
The capital top-up is aimed at facilitating the acquisition of two real estate assets owned by Remat Al-Riyadh Development Co., according to the CMA website.
A shareholders’ circular on the capital hike will be published within sufficient time before the extraordinary general meeting (EGM) to be convened to vote on the move.
The circular will include all information shareholders need to know before making an informed decision when voting on the capital increase, including risk factors.
A voting decision without reading the circular and carefully reviewing its content may involve high risks. Therefore, shareholders should carefully read the circular to be able to reach a proper voting decision. If the circular proves difficult to understand, it is recommended to consult with an authorized financial advisor.
The CMA's approval should never be considered as an endorsement of the potential acquisition. It merely means that the legal requirements as per the Capital Market Law and its executive regulations have been met.
In September 2024, Riyadh Development signed an agreement to acquire two real estate assets from Remat through a capital increase aimed at the issuance of new shares to the seller in exchange for these in-kind assets, according to Argaam’s data.
The total agreed value of the seller's assets is SAR 1.4 billion, excluding real estate transaction tax.
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