MEDGULF to launch rights trading, subscription to new shares on Nov. 15

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co.’s (MEDGULF) set dates for the planned rights issue trading and subscription process to new shares, according to a bourse filing.

The rights issue trading period and subscription to new shares will begin on Nov. 15.

Meanwhile, the rights trading will end on Nov. 22, while the subscription process will close on Nov. 25.

Rights issue holders are allowed to exercise their right to subscribe to new shares (in full or in part) up to the number available in their portfolios. Trading in rights issue and subscription to new shares for registered shareholders and new investors will be as per the prospectus.

In the event that shares remain unsubscribed, the remaining shares and fractional shares, if any, will be offered to institutional investors, according to the prospectus. The underwriter SNB Capital will subscribe to the rights issue if the entire rights are not fully covered.

 The investors that are not willing to subscribe must sell the rights issue 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.

According to data compiled by Argaam, shareholders approved the board of directors’ recommendation to increase capital from SAR 700 million to SAR 1.05 billion through SAR 420 million rights issue, during the extraordinary general assembly meeting (EGM) held on Nov. 3.