RIYADH: Saudi developer Jabal Omar said 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 SR6.7 billion to SR9.3 billion ($2.48 billion), it said in a statement on Saudi Arabia's bourse website. In October, the developer secured a SR1.35 billion ($360 million) bridge loan to finance building the project close to the Grand Mosque in Makkah. 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 earlier Sunday amended Jabal Omar's closing stock price Saturday to SR14.9 a share from SR16.8 to adjust for the capital increase. Last week, Saudi developer Emaar Economic City received a SR5 billion loan ($1.33 billion) from the Kingdom's finance ministry to speed up construction of a project.
