CMA approves Emaar EC capital raise via debt conversion

Logo of Emaar The Economic City (Emaar EC)

The Capital Market Authority (CMA) approved Emaar The Economic City's (Emaar EC) request to increase its capital through converting debt of SAR 4.12 billion, according to the regulator website.

The approval should never be viewed as an endorsement of the feasibility of the capital increase. It rather means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

A shareholders' circular will be published clarifying reasons for the capital increase and its objectives within sufficient time prior to the extraordinary general meeting (EGM) to enable shareholders to vote on the capital increase through debt conversion. If the EGM approval is not obtained within six months from the CMA's approval date, the approval shall be deemed cancelled.

The approval is conditional on the EGM decision and completion of the necessary procedures in relation to the applicable regulations.

A voting decision without reading the shareholders' circular carefully or fully reviewing its content may involve high risk. Therefore, shareholders should carefully read the circular in order to make a well-informed decision when voting on the capital increase resolution for the said purpose. If the shareholders' circular proves difficult to understand, it is recommended to consult with an authorized financial advisor.

The company announced, on March 8, a decision to amend its previous board recommendation to increase capital by converting debt owed to the Public Investment Fund into new ordinary shares, raising the debt to be converted from SAR 3.98 billion to SAR 4.12 billion to include all accrued interest, fees, and commissions as of Dec. 31, 2024, according to Argaam data.