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Sun 29 May 2011 01:07 PM

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Saudi Jabal Omar shareholders approve capital hike to $2.5bn

Developer plans issue of one share for each 2.6 held; money raised will finance Makkah project

Saudi Jabal Omar shareholders approve capital hike to $2.5bn
In October, Jabal Omar secured a SR1.35bn ($360m) bridge loan to finance building the project close to the Grand Mosque in Makkah

Saudi developer Jabal Omar said on Sunday its shareholders approved a 38.4 percent capital increase through a rights issue, as it seeks to finance a major project.

The company will issue one share for each 2.6 outstanding shares at SR10 per share and the firm's capital will be raised from the current SR6.7bn to SR9.3bn ($2.48bn), it said in a statement on Saudi Arabia's bourse website.

In October, the developer secured a SR1.35bn ($360m) bridge loan to finance building the project close to the Grand Mosque in Makkah, Islam's holiest city.

The project will include luxury hotels, shops and houses.

The developer also sought shareholders' approval last year for a change in its basic charter that would allow it to borrow more.

Saudi Arabia's bourse TASI earlier on Sunday amended Jabal Omar's closing stock price on Saturday to SR14.9 a share from SR16.8 to adjust for the capital increase.

Last week, Saudi developer Emaar Economic City received a SR5bn loan ($1.33bn) from the kingdom's finance ministry to speed up construction of a project.

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