Ash-Sharqiyah rights issue 86.28% covered

Logo of Ash-Sharqiyah Development

Ash-Sharqiyah Development Co. announced that its rights issue was 86.28% covered, with 19.41 million out of 22.5 million offered shares subscribed, according to a Tadawul statement.

The offering proceeds reached SAR 194.12 million.

The offering period for unsubscribed shares amounting to 3.09 million will start at 10:00 am, Sunday, May 28, until 5:00 pm, Monday, May 29.

Rump shares will be offered to institutional investors who will submit purchase offers.

The rump shares will be allocated to the institutional investors with the highest bid, then the lowest. The shares will be allocated proportionately to institutional investors submitting the same offer.

In the event that institutional investors have not subscribed to all rump shares, the remaining will be allocated to the underwriter, who will buy them at the offering price.

The company's subscription to new shares and rights trading began, on May 11, to increase capital by 300%, or SAR 225 million, to SAR 300 million from SAR 75 million, through offering 22.5 million shares at SAR 10 each, according to data available with Argaam.

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