Batic rights trading, new shares subscription begins today

Logo of Batic Investments and Logistics Co.

Batic Investments and Logistics Co.'s subscription to new shares and rights trading begins today, Dec. 13, to increase capital by 100% from SAR 300 million to SAR 600 million.

Rights trading will end on Dec. 20, while subscription to the new shares will close on Dec. 23.

The company intends to offer 30 million shares at SAR 10 per share, granting each registered shareholder at the record date one right for each share held.

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

AlJazira Capital will 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, the company said.

According to data compiled by Argaam, shareholders of Batic are set to vote on the transactions and contracts made between Batic and Hazon, during the ordinary general assembly meeting (OGM) scheduled for Dec. 29.

The step comes following shareholders’ refusal to approve the contract under which Batic will buy Hazon’s entire stake, which represents 20 shares, or 2% of Smart City Solutions for Communications and Information Technology, as well as its rights and obligations at a total value of SAR 6 million without any preferential conditions.

Chairman Ahmed Al-Sanea and board member Feras Al-Bawardi have an indirect interest in Smart City Solutions.

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