Saudi Paper to start rights trading, new shares subscription on Oct. 23

Logo of Saudi Paper Manufacturing Co. (SPM)

Saudi Paper Manufacturing Co. (SPM) said the trading period for its rights issue and subscription to new shares will begin on Oct. 23. 

In a statement to Tadawul, Saudi Paper said the rights trading will close on Oct. 30, while the subscription to the new shares will end on Nov. 2. 

Rights holders are allowed to exercise their rights to subscribe to new shares, in full or in part, up to the number of rights available in their portfolios. Rights trading and subscription to the new shares for registered shareholders and new investors will be in accordance to the prospectus. 

The remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus. Alinma Investment will underwrite the rights issue if the entire subscription is not fully covered. 

Investors not willing to subscribe must sell their rights during the specified trading period to avoid the 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 company said. 

According to data available with Argaam, Saudi Paper shareholders approved on Oct. 17 the board of directors' recommendation on capital increase through a SAR 145 million rights issue. 

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