Al-Baha rights trading, new shares subscription begin today

Logo of Al-Baha Investment and Development Co.

Al-Baha Investment and Development Co.’s subscription to new shares and rights trading begins today, Feb. 28, to increase capital by 67.79% from SAR 177 million to SAR 297 million.

Rights trading will end on March 7, while subscription to the new shares will close on March 10.

The company intends to offer 12 million shares, at SAR 10 each, granting each registered shareholder on the record date 0.68 rights for each share held. 

Last week, Al-Baha’s shareholders approved the board of directors’ recommendation to increase capital via a SAR 120 million rights issue, according to data compiled by Argaam.

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.

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