Riyadh – Mubasher: The shareholders of Emaar The Economic City approved the board’s proposal to increase the capital by SAR 2.83 billion (33%).
The new capital will stand at SAR 11.33 billion distributed over 1.13 billion ordinary shares, compared to SAR 8.5 billion and 850 million shares prior to the raise, according to a bourse filing on Monday.
Emaar The Economic City aims to increase the capital to settle the debt it will owe to the Public Investment Fund (PIF), being the creditor, and convert the credit facility to 283.33 million new ordinary shares issued to PIF.
The listed company also aims to improve its liquidity and credit position through the capital raise to provide better solvency that meets its financial obligations while boosting its ability to achieve the set business growth goals.
Emaar The Economic City obtained the Capital Market Authority’s (CMA) approval for the capital hike through debt conversion at the beginning of last August.
