AYYAN subscription, rights trading to start today

Logo of AYYAN Investment Co.

The subscription period and tradable rights trading for AYYAN Investment Co. start today, July 11.

The rights trading will end on July 21, while the subscription process will close on July 24.

For More IPOs

The company will offer 20 million ordinary shares at SAR 10 per share through issuing priority rights shares worth SAR 200 million riyals, to increase in the company’s capital by 24.8% from SAR 806.36 million to SAR 1006.36 million.

The company's shareholders approved the board’s proposal of capital increase via a SAR 200 million rights issue during the extraordinary general meeting (EGM) on July 8.

According to the rights issue prospectus, AYYAN will use the proceeds to purchase medical devices and equipment for Al-Salam Hospital, affiliated with the subsidiary, Al-Salam Medical Services Co., as well as payment to suppliers of subsidiaries, Al Ahsa Medical Services and Al-Salam Medical Services. The company will also pay outstanding obligations to financial entities by its subsidiary, Al-Salam Medical Services. Additionally, it will pay operational expenses for the subsidiary, Al-Salam Medical Services.

Right-holders may exercise their subscription right, in whole or in part, to the new shares in proportion to the rights existing in their portfolios.

Any unsubscribed shares and fractional shares will be offered to institutional investors, in accordance with the details set in the prospectus.

Alinma Investment will underwrite the new shares that remain unsubscribed after the rump offering.

The company also drew attention of investors not willing to subscribe to the importance of selling the rights issue 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, whether by way of sale or subscription.