Tihama sets period for rights issue, new shares subscription

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. determined the period of its rights issue trading and subscription to the new shares, according to a statement to Tadawul today, April 4.

Both will start on April 6. However, rights issue trading will end on April 13, while the period for subscription to new shares will expire on April 25, said the company.

Right-holders may exercise their subscription right, in whole or in part, to the new shares in proportion to the rights existing in their portfolios. For registered shareholders and new investors, rights trading and new shares subscription will be as per the prospectus.

Any unsubscribed shares and fractional shares will be offered to institutional investors, in accordance with the details set in the prospectus. Alinma Investment Co. will underwrite the new shares that remain unsubscribed after the rump offering.

Investors not willing to participate in the subscription period should consider the importance of selling their rights during the specified trading period. This is to avoid being exposed to a loss in the value of their investment portfolios for not benefiting from their rights by sale or subscription, the statement said.

On April 2, the company's shareholders approved the board’s recommendation to raise capital through a SAR 350 million rights offering, to finance Tihama’s future investments and expansion plan, support working capital and fulfill financial obligations, according to Argaam's data.

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