Al Akaria rights trading, new shares subscription commence today

Logo of Saudi Real Estate Co.

Saudi Real Estate Co. (Al Akaria) subscription to new shares and rights trading begin today, May 30, to increase capital by 56.25% to SAR 3.75 million from SAR 2.4 million.

Rights trading will end on June 6, while subscription to the new shares will close on June 9.

The developer intends to offer 135 million shares, at SAR 11.80 each, granting each registered shareholder on the record date 0.5625 rights for every 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.

SNB Capital 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.

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