Wataniya rights trading, new shares subscription begin today

Logo of Wataniya Insurance Co.

Wataniya Insurance Co.’s subscription to new shares and rights trading begins today, April 25, to increase capital by 100% from SAR 200 million to SAR 400 million.

Rights trading will end on May 9, while subscription to new shares will close on May 12.  

The company intends to offer 20 million shares, at SAR 10 each, granting each registered shareholder on the record date almost one right for each share held. 

On April 13, Wataniya’s shareholders approved the board of directors’ recommendation to increase capital via a SAR 200 million rights issue, according to data compiled by Argaam.

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.

ANB Invest 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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