AYYAN OGM to vote on amending use of rights issue proceeds on Dec. 5

Logo of AYYAN Investment Co.

AYYAN Investment Co.’s shareholders will vote on the board’s recommendation with regard to amending the use of the rights issue proceeds, amounting to SAR 200 million, stated in the prospectus issued on July 10, 2024.

This will be discussed in the ordinary general meeting (OGM) scheduled for Dec. 5.

In a Tadawul statement, the company said there was a difference in the use of the proceeds from what was disclosed in the prospectus.

The reason was the maturity of some operational and financial obligations before receiving the proceeds. This was also to ensure the progress of work and cover the operational needs of Al Salam Medical Services Co. Accordingly, an interest-free loan was obtained from the related party, Al Othman Holding Co., where the total amount obtained reached SAR 226.1 million. After receiving the proceeds, it was used to pay off an existing balance due to Al Othman Holding at SAR 150 million.

The existing balance that was paid is due to Al Othman Holding in exchange for the financing referred to above, which was used for the same purposes stipulated in the right issue prospectus, as follows:

According to data available to Argaam, AYYAN published, on June 11, the prospectus for a SAR 200 million rights issue. The offering is aimed at enabling the company to implement its operational plans and supporting its working capital. The rights issue was 84.8% subscribed.

The company signed, on Aug. 19, a binding acquisition and subscription agreement with Dallah Healthcare Co. to purchase its stakes in Al Ahsa Medical Services Co. and Al-Salam Medical Services Co. The agreement includes acquiring 97.4% of Al-Ahsa (which owns Al-Ahsa Hospital in Al-Ahsa) and 100% of Al-Salam Medical Services (which owns Al-Salam Hospital in Al-Khobar).