Construction Developer Jabal Omar plans debt-to-capital conversion By Andrew Hammond December 21, 2023, 11:26 AM Reuters A visitor to the Grand Mosque in Mecca. Jabal Omar operates the nearby complex and was hard hit by Covid-19 shutdowns Operates complex near Grand Mosque Settling $146m of debt Deals subject to approval Jabal Omar Development Company, one of the largest companies on the Saudi stock exchange, said this week it will settle around SAR547.5 million ($146 million) in debt owed to two companies by converting it into shares in a formal capital increase. The real estate developer builds and manages property in the pilgrimage city of Mecca. It said it would settle SAR309.56 million with Makkah Construction and Development and SAR237.93 million with Central District Cooling, based on the share price at closing on December 20. How Saudi tech is addressing the lack of construction sand Payment app Foodics to launch first Saudi fintech IPO Saudi Arabia seals $11bn syndicated bank loan The company has a market capitalisation of SAR25.86 billion. The deals are subject to approval by an extraordinary general meeting and ANB Capital has been appointed as adviser, a statement on stock market site Tadawul said. Makkah Construction is already a minor shareholder in the firm, while Central District Cooling is a subsidiary of Jabal Omar. The deal will “improve the company’s liquidity, financial indicators, and enhance its ability to achieve its growth objectives”, it said. Last year, Jabal Omar converted SAR5.3 billion ($1.41 billion) of debt into new shares for Alinma Makkah Real Estate Fund. The company operates the Jabal Omar complex within walking distance of the Grand Mosque in Mecca. It was hard hit when the pandemic curtailed pilgrimages.