Arabia Insurance to start rights trading, new shares subscription today

Arabia Insurance Cooperative Co. (AICC)

Arabia Insurance Cooperative Co.'s (AICC) subscription to new shares and rights trading will begin today, Nov. 27, to increase capital by 100%, or SAR 265 million, according to a statement to Tadawul.
 

Rights trading will end on Dec. 4, while subscription to the new shares will close on Dec. 7.

The Saudi insurer intends to offer 26.5 million shares, at SAR 10 each, via issuing one right per each existing share.

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.

Al Rajhi Capital, the financial advisor and underwriter for the offering, 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.

Shareholders approved a capital increase by 100% through a SAR 265 million rights offering, during the EGM held on Nov. 20, according to data available with Argaam.

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