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‎Riyadh Development EGM to vote on capital hike to acquire 2 assets on Feb. 3

January 13, 2025

‎Riyadh Development EGM to vote on capital hike to acquire 2 assets on Feb. 3

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Logo ofRiyadh Development Co.

Riyadh Development Co.’s shareholders are set to vote on increasing capital by 31.58% from SAR 1.78billion to SAR 2.34billion, during the extraordinary general meeting (EGM) that will be held on Feb. 3.

The company’s number of shares will increase from 177.78 million shares to 233.93 million shares. The capital top-up is aimed at facilitating theacquisition of two real estate assets owned byRemat Al-Riyadh Development Co.

In a statement to Tadawul, the company added that purchased assets are a 787,480-square-meter (sqm) land plot north of Dammam Road, Al-Rimal District, and a 214,000-sqmplot south of the Northern Ring Road, Al-Murooj District, Riyadh.

Deal Details

Market Value

As of Aug. 29, 2024, the agreed date for determining new shares, the company’s market value stands at SAR 4.44 bln

Current Capital

SAR 1.78 bln

Number of Shares

177.78 mln

Capital Hike

SAR 561.53 mln

Percentage Increase

31.58%

New Capital

SAR 2.34 bln

New Number of Shares

233.93 mln

Post-Increase Ownership

100%

New Shareholders’ Ownership Post-Acquisition

24%

Additionally, shareholders will vote on the deals and contracts made between the company and Remat, in which the Chairman, Prince Faisal bin Abdulaziz bin Ayaf, has an indirect interest, as he is the Chairman of Remat.

This includes the acquisition agreement and in-kind contribution concluded between Riyadh Development and Remat on Sept. 1, 2024.

For More IPOs

Furthermore, the EGM will vote on amending Article 3 of the company’s bylaws concerning the company’s objectives.

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