His Highness Prince Dr. Faisal bin Abdulaziz bin Ayyaf, Mayor of Riyadh Region and Chairman of the Board of Directors of Riyadh Development Company and Remat Al-Riyadh Development Company, rang the opening bell of the Saudi Stock Exchange (Tadawul) today to mark the increase in the capital of Riyadh Development Company through issuing shares for Remat Al-Riyadh Development Company. The event was attended by Abdullah bin Sulaiman Abudawood, CEO of Remat Al-Riyadh Development Company, and Jihad bin Abdulrahman Al-Qadi, CEO of Riyadh Development Company.
This event is a pivotal milestone in the history of the two companies, as comes within a strategic acquisition agreement worth 1.4 billion riyals, through increasing the capital of Riyadh Development and issuing new shares in favor of Remat Al-Riyadh Development Company, the development arm of the Riyadh Region Municipality, reinforcing integration between the public and private sectors to achieve the objectives of the Kingdom’s Vision 2030.
His Highness stated that this step supports the Municipality’s strategy to stimulate investments and maximize returns to achieve financial sustainability, in light of the unprecedented development witnessed by Riyadh in terms of growth opportunities, qualitative projects in the City’s infrastructure, and readiness to host the most important global events and occasions. He praised the approval of the transaction, reflecting investors’ confidence in Riyadh Development Company's vision, which will further strengthen its position as a strategic and influential partner in advancing the national economy.
His Highness emphasized that the company, alongside the Municipality and its affiliates , will work to enhancing financial sustainability and diversifying the investment portfolio, in addition to developing innovative projects that enhance the life in the capital; Riyadh, and contribute to achieving the objectives of the Kingdom’s Vision 2030.
“The details of this acquisition took into account achieving added value for shareholders, accelerating the company’s investment in promising priority sectors, and contributing to enriching the urban landscape in the Kingdom in general and in our capital in particular.” His Highness noted.
As part of this significant step, 56,153,041 new ordinary shares — representing 24% of the company's capital post-increase — were deposited, each with a nominal value of SAR 10, based on the closing price recorded on August 29, 2024.
