The Capital Market Authority (CMA) has approved a request from Riyadh Development Company to increase its capital from SAR 1.78 billion to approximately SAR 2.34 billion. This increase will be achieved through the issuance of approximately 56.15 million ordinary shares. The primary purpose of this capital raise is to acquire two real estate assets currently owned by Rimat Riyadh Development Company.

In a statement issued on Tuesday, the CMA clarified that a shareholders' circular regarding the capital increase will be distributed well in advance of the extraordinary general assembly meeting. This circular is required to contain all necessary information and data that shareholders need to review, particularly details related to the capital increase and associated risks, before casting their votes on the matter.

The CMA emphasized that making a voting decision without reviewing and understanding the shareholders' circular could carry significant risks. Therefore, shareholders are urged to carefully study the circular to make an informed decision when voting.

Furthermore, the CMA advised that if shareholders encounter any difficulties in understanding the contents of the circular, they should consult with a licensed financial advisor.

The CMA noted that its approval should be viewed as confirmation of the company's adherence to regulatory requirements under the Capital Market Law and its executive regulations. However, this approval does not necessarily signify the CMA's endorsement of the acquisition's viability.