Banan’s unit Qimam Noshoz gets shareholder nod to raise capital to SAR 110M

Logo of Banan Real Estate Co.

The extraordinary general assembly of Banan Real Estate’s subsidiary, Qimam Noshoz Real Estate Development Co. (a simplified joint-stock company), approved on May 25 a capital increase from SAR 71 million to SAR 110 million by issuing 3.9 million new shares at a nominal value of SAR 10 per share.

Banan’s board of directors also approved subscription to a total of 2.54 million shares by both Banan Real Estate and its subsidiary, Al-Aziza Investment and Real Estate Development Co. Banan Real Estate will subscribe to 1.29 million shares valued at SAR 12.97 million, raising its ownership in Qimam Noshoz to 26.63% after the capital increase, up from 23% previously.

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Meanwhile, Al-Aziza will subscribe to 1.24 million shares worth SAR 12.4 million, increasing its stake to 25.48%, compared to 22% before the increase.

Together, their combined ownership in Qimam Noshoz will rise to 52.11%, up from 45% prior to the capital hike.

Banan said the capital increase supports its strategy to back the growth and expansion plans of its subsidiary, strengthen its financial position, and positively influence the company’s consolidated financial results.