Saudi real estate firm says some rights issue proceeds used differently from prospectus allocations, citing regulatory and project changes. Board to review.
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Hamad Mohammed Bin Saedan Real Estate Co. said the actual use of some rights issue proceeds at the project level differed from the allocations in its prospectus.
In a statement to Tadawul, the company attributed the differences to regulatory changes, actual financing needs, varying project execution and readiness stages, and market and technical developments affecting several projects.
The discrepancies included two projects with clear figures. The Residential Floors Project on Block 13 in Al-Rimal District received SAR 22.7 million from the proceeds but used none of it, a 100% difference. The Residential Floors Project on Block 30 in Namar District, Riyadh, was allocated SAR 15 million but used SAR 403,034, a 95.48% difference. The company did not detail the exact shortfall for a third project, the Logistics Warehouses Project on Blocks 17–20 in Al-Nadhim District, though it said the overall allocation pattern shifted.
The company stressed that the total net offering proceeds and their primary purpose remained unchanged. The money stayed allocated to capital projects.
Hamad Bin Saedan's board recommended reassessing how the proceeds are deployed to improve the use of funds and increase shareholder returns. The review will weigh regulatory and operational changes, market conditions, and geopolitical developments. If the board decides to amend how proceeds are spent, it will submit the proposal to a shareholders' general meeting for approval under applicable regulations.
The disclosure to Tadawul follows Saudi market rules requiring listed companies to report material deviations from how they planned to use capital raised from shareholders. The statement did not indicate any regulatory penalty but signaled that management is aware of the perception risk around fund allocation.
The company said any material developments from the review will be announced in due course.
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