Saudi Paper Manufacturing Co. (SPM) said subscription to new shares and the rights trading will start on Dec. 14, 2020.

 

Rights trading will end on Dec. 21, and subscription to the new shares will close on Dec. 24, the company said in a bourse statement.

 

Key Figures of the Capital Hike

Current Capital

SAR 92 mln

Number of shares

9.2 mln shares

Hike (%)

108.7%

New capital

SAR 192 mln

Number of shares after increase

19.2 mln

Key Figures of the Rights Issue

Number of rights issue shares

10 mln shares

Issue price

SAR 10

Issue size

SAR 100 mln

Record date

By the close of the second trading day after the extraordinary general meeting date.

Start of rights issue trading

Dec. 14, 2020

End of rights issue trading

Dec. 21, 2020

Start of subscription to new shares

Dec. 14, 2020

End of subscription to new shares

Dec. 24, 2020

Use of proceeds

To purchase raw materials, mainly tree pulp to feed the company's production lines, rebuild assets to improve production quality, purchase equipment to boost 
production and repay part of the bank loans
 

Rights holders are entitled to subscribe to the new shares partially or fully pro rata. The remaining shares will be reoffered to institutional investors.

 

In case of under subscription, the financial advisor and underwriter, Wasatah Capital, will subscribe to these rights.

 

Investors not willing to subscribe to the offering should note the importance of selling the rights they hold during the specified trading period to avoid the resulting decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription, the statement added.

 

SPM’s shareholders approved, on Dec. 6, a capital hike to SAR 192 million from SAR 92 million, by offering SAR 100 million rights issue, Argaam earlier reported.

 

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