MEDGULF rights trading, new shares subscription begins today

15/11/2021 Argaam Special

Logo of MEDGULF


The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co.’s (MEDGULF) subscription to new shares and rights trading begins today, Nov. 15, to increase capital from SAR 700 million to SAR 1.05 billion.

 

Rights trading will end on Nov. 22, while subscription to the new shares will close on Nov. 25.

 

The company intends to offer 35 million shares at SAR 12 per share, granting each registered shareholder at the record date nearly 0.5 rights for each share held.

 

Capital Increase Details

Current capital

SAR 700 mln

Number of shares

70 mln

Capital increase%

50%

Capital after increase

SAR 1.05 bln

Number of shares after increase

105 mln

 

 

Rights Issue Details

Number of shares offered

35 mln

Offer price

SAR 12

Size of issue

SAR 420 mln

Rights coefficient

0.5 right for every share held

Record date

By the close of trading on the EGM date

Uses of offering proceeds

Funding the company's potential investments

SAR 377 mln

Increasing the statutory deposit

SAR 36 mln

Offering costs

SAR 7 mln

 

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.

 

SNB 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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