Gulf Union Alahlia’s rights trading, subscription process begin today

Logo of Gulf Union Alahlia Cooperative Insurance Co. 

Gulf Union Alahlia Cooperative Insurance Co. will launch today, May 9 its rights issue and subscription to new shares to raise capital by 100% from SAR 229.5 million to SAR 458.95 million.

The rights trading period will end on May 16, while the subscription to new shares will close on May 19.  

The company will offer 22.95 million shares, at SAR 10 each, granting each registered shareholder one right for every share held. 

Rights holders are allowed to exercise their right to subscribe in new shares, in full or in part, up to the number of rights available in their portfolios. Rights trading and subscription to new shares for registered shareholders and new investors will be as per the prospectus.

In case of rump shares, the remaining shares and fractional shares will be offered to institutional investors, in accordance with the prospectus.

The financial advisor, lead manager and underwriter – Yaqeen Capital – will underwrite the rights of Gulf Union Alahlia in the event that the entire subscription is not fully covered.

Investors not willing to subscribe must sell the right issues they hold 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.

For More IPOs