ACIG rights trading, new shares subscription begin today

Logo of Allied Cooperative Insurance Group

Allied Cooperative Insurance Group’s (ACIG) subscription to new shares and rights trading begins today, Jan. 3, to increase capital by 106% from SAR 141 million to SAR 291 million.

Rights trading will end on Jan. 10, while subscription to the new shares will close on Jan. 13.

The company intends to offer 15 million shares, at SAR 10 each, granting each registered shareholder on the record date 1.06 rights for each share held. 

Rights issue holders are allowed to exercise their right to subscribe to new shares (in full or in part) up to the number of shares 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, remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus.

FALCOM Financial Services Co. will underwrite the rights issue if the entire subscription is not fully covered.

Investors 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, the insurer said.

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