Saudi Arabia's Retal Urban Development Company has announced that it has received go-ahead from Capital Market Authority (CMA) for a 11% capital increase from SAR500 million to SAR555 million ($132 million to $146.7 million). 

The planned capital hike will be carried out through issuing 55 million ordinary shares to acquire a 47.5% stake in Ajdan Real Estate Development Company.

The move is mainly aimed at acquiring a strategic 47.5% stake in Ajdan Real Estate Development Company.

Retal had early this year signed a share-swap agreement with Al Fozan, a leading Saudi business conglomerate with a diversified investment portfolio in trading, real estate, manufacturing and retail industries, to acquire its full stake in Ajdan.

Al Fozan's shareholding represents 47.5% of Ajdan’s capital (equivalent to 14.25 million shares), it added.