Arabia Insurance to start rights trading, new shares subscription on Nov. 24

Logo of Arabia Insurance Cooperative Co.

Arabia Insurance Cooperative Co.'s (AICC) subscription to new shares and rights trading will begin on Nov. 24, to increase capital by 100%, according to a statement to Tadawul.
 

Rights trading will end on Dec. 1, while subscription to the new shares will close on Dec. 6.

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 of record until the close of trading on the extraordinary general meeting (EGM) date and those registered with Edaa at the end of the second trading day following the EGM date will be eligible for the rights issue.

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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