Riyadh - Mubasher: Shareholders of First Avenue for Real Estate Development Company have approved a substantial capital increase and a strategic share buyback program during an extraordinary general meeting (EGM) held on 15 June.
The assembly, which convened with a quorum of 80.285, endorsed a 46.34% expansion of the company’s share capital alongside a series of related party transactions and governance updates.
The approved capital hike will see First Avenue’s share capital rise from SAR 205 million to SAR 300 million. This increase is to be executed through the issuance of 95 million new ordinary shares, funded by the capitalization of SAR 95 million from the company’s share premium account.
The expansion is structured to benefit both shareholders and employees, with 92.24 million shares allocated as bonus shares at a ratio of nine new shares for every 20 existing shares. The remaining 2.75 million shares are earmarked for the company’s employee incentive program.
Management stated that the capital increase is intended to strengthen the firm’s financial position and support its long-term growth objectives.
In addition to the capital expansion, the assembly authorized a share buyback program. First Avenue is now permitted to purchase up to 3 million of its own ordinary shares to be held as treasury shares for a maximum period of five years.
These shares are intended for use in future acquisition swaps or as consideration for asset purchases, providing the board with greater flexibility in executing corporate development strategies. The board has been granted a 12-month window to complete the buyback process.
Shareholders also addressed the company’s dividend policy and financial oversight. The board was authorized to distribute interim dividends for the 2026 fiscal year on a quarterly or semi-annual basis.
Forvis Mazars was appointed as the external auditor for the fiscal year ending 31 December 2025, with a total fee of SAR 440,000.
The meeting saw the ratification of several significant related party contracts. These included a SAR 315 million credit facility agreement with Bank Aljazira and a massive SAR 3.47 billion transaction with Dar Al Majed Real Estate Company (Al Majdiah) for the purchase of units in the Bloom Real Estate Investment Fund 1.
Furthermore, the assembly approved an interest-free revolving loan of up to SAR 100 million from board member Nader bin Hassan Al-Amri to support the company’s liquidity requirements.
First Avenue joined a consortium for the development of East Hindawiyah District in Makkah, at an estimated cost of SAR 2 billion.
