Saudi-based Retal Urban Development Company has announced that it had submitted a request to the kingdom’s Capital Market Authority (CMA) to approve a capital increase to facilitate its planned acquisition of a stake in Ajdan Real Estate Development Company from AlFozan Holding.

Once it gets CMA nod, Retal will be raising its capital to SAR555 million ($151 million) from SAR500 million ($136 million) through the issuance of 55 million new shares to AlFozan Holding, said the company in its filing to Saudi bourse tadawul.

The move follows Retal’s announcement last month of signing a share swap agreement with AlFozan Holding to acquire its entire stake in Ajdan Real Estate Development, consisting of 14.25 million shares representing 47.5% of Ajdan’s share capital.

In exchange, Retal will issue new ordinary shares to AlFozan Holding subject to approvals from the CMA and Retal’s extraordinary general assembly, it added.-TradeArabia News Service