Logo of Jabal Omar Development Co.
Jabal Omar Development Co.’s (JODC) board of directors recommended, on April 20, a capital increase from SAR 9.29 billion to SAR 11.55 billion by issuing 225.13 million shares.
The capital top-up will be implemented by converting SAR 5.30 billion of debt owed to Alinma Makkah Real Estate Fund, as per the unaudited consolidated financial statements for the three- and nine-month ended on Sept. 30, 2021.
This will also include settling all rights and obligations related to the fund and a number of concerned parties, to be converted into new ordinary shares in the company for the fund unitholders (excluding the company in its capacity as a unitholder in the fund).
The company indicated that the step would help improve liquidity and credit position, as well as support growth plans.
Jabal Omar needs to obtain the necessary approvals of the regulatory competent authorities and upcoming general meeting on the capital top-up. It will also nominate a financial advisor to manage the capital increase and will file later for the approval of the Capital Market Authority (CMA).
Earlier this month, JODC entered into a binding transaction agreement regarding the full settlement of the rights and obligations of Alinma Makkah Real Estate Fund’s assets in exchange for 225.1 million new shares to be issued to the fund’s unitholders in JODC.
On Jan. 9, the developer received a notification from the manager of Alinma Makkah Fund, stating that its unitholders agreed to make basic changes to the terms and conditions, allowing the option of in-kind exit for the owners, Argaam reported.
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