Riyadh - Mubasher: Retal Urban Development Company received the approval of the Capital Market Authority (CMA) to increase its capital from SAR 500 million to SAR 555 million.
The capital hike will be executed through the issuance of 55 million ordinary shares to facilitate the acquisition of a 47.50% stake in Ajdan Real Estate Development Company.
The regulator stated that a shareholders' circular detailing the transaction, including risk factors and capital increase specifics, will be published ahead of the company’s Extraordinary General Assembly meeting.
The CMA emphasized that its approval signifies compliance with regulatory requirements under the Capital Market Law and should not be viewed as an endorsement of the acquisition's commercial feasibility.
Retal's shareholders are advised to review the circular thoroughly before voting on the capital increase.
The CMA noted that voting without studying the document involves high risks and recommended that investors consult a licensed financial advisor if they require clarification on the contents of the disclosure.
