Ma’aden: The rights deposited in shareholders’ portfolios doesn’t necessarily mean their ownership of the company’s shares

The Saudi Arabian Mining Company (Maaden) said that the rights which were deposited in shareholders’ portfolios do not indicate ownership of a share of the company.
 

 These rights are financial instruments that give shareholders the right to subscribe to a newly issued share. Shareholders may exercise their rights by subscribing for the newly issued shares at a price of SAR 23 per share or can sell their rights through Tadawul market.

 Maaden encouraged its shareholders to either exercise their right to subscribe before the end of trading on 02/12/2014 or to sell their rights before the end of trading on Thursday 27/11/2014. Any rights held by shareholders that have not been exercised by 02/12/2014 will be offered in an auction to institutional investors with any proceeds being paid to those shareholders that did not subscribe for the newly issued shares, as stated in the prospectus.

Maaden also indicated that the rights bought rights from the market do not indicate ownership of a share of the company. Those who bought rights may exercise their right to subscribe for the newly issued shares at a price of SAR 23 before the end of trading on 02/12/2014 or to sell their rights before the end of trading on Thursday 27/11/2014.

 Any rights that have been bought but have not been exercised by the holders of those rights by 02/12/2014 will be offered in an auction to institutional investors with any proceeds being paid to those holders of rights that did not subscribe for the newly issued shares, as stated in the prospectus.

According to Argaam; Ma’aden offered 243.5m shares for IPO on November 18, 2014 for a price of SAR 23/share representing the first tranche of its SAR 5.6bn IPO.

The eligibility is to registered shareholders on November 13, 2014.