Alhokair Group begins rights trading, subscription period today

Logo of Abdulmohsen Alhokair Group for Tourism and Development

Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) launches today, July 26, subscription to new shares and rights trading to raise its capital from SAR 343 million to SAR 650 million.

Rights trading will end on Aug. 2, while subscription to new shares will close on Aug. 5.

The company will offer 30.7 million shares at SAR 10 each. Shareholders of record will be eligible for 0.895 right for every share held.

Rights issue holders are allowed to exercise their right to subscribe to new shares (wholly or partially) up to the number available in their portfolios. Trading 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, the remaining shares and fractional shares, if any, will be offered to institutional investors, according to the prospectus.

Financial advisors and underwriters, Falcom Financial Services and BLOMINVEST Saudi Arabia will undertake to 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.

Alhokair shareholders approved increasing capital through SAR 307 million rights issue, to boost the company’s solvency and reduce borrowing rates, during the extraordinary general meeting (EGM) held on July 8, according to Argaam.

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