Hamad Bin Saedan flags differences in rights issue proceeds use

Logo of Hamad Mohammed Bin Saedan Real Estate Co.

Hamad Mohammed Bin Saedan Real Estate Co. said the actual use of some rights issue proceeds at the project level differed from the allocations set out in the prospectus.

In a statement to Tadawul, the company attributed the differences to regulatory changes, actual financing needs, varying project execution and readiness stages, and market and technical developments affecting several projects.

This situation resulted in differences in the distribution and use of part of the allocations among the company’s capital projects to optimize the use of proceeds, without affecting the total amounts allocated to finance those projects.

The differences were: the Residential Floors Project on Block 13 in Al-Rimal District was given SAR 22.7 million but used none, showing a 100% difference; the Residential Floors Project on Block 30 in Namar District, Riyadh, was given SAR 15 million but used SAR 403,034, showing a 95.48% difference; and the Logistics Warehouses Project on Blocks 17–20 in Al-Nadhim District, Riyadh, was given SAR.

The company said the differences did not change the total net offering proceeds or their primary purpose, as the proceeds remained directed toward financing its capital projects.

The board also recommended reassessing the use of the offering proceeds to optimize their deployment and enhance shareholder returns, taking into account operational and regulatory changes, market conditions, and geopolitical developments.

The review will assess the use of the proceeds in line with current market conditions and available investment opportunities in a way that serves the company and its shareholders.

If the review results in proposals to amend the use of the proceeds, they will be submitted to the shareholders’ general meeting for the required approvals under applicable regulations. Any material developments will be announced in due course.