Alhokair Group to begin rights trading, subscription period on July 26

Logo of Abdulmohsen Alhokair Group for Tourism and Development

Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) will start subscription to new shares and rights trading on July 26, according to a bourse filing.

Rights trading will end on Aug. 2, while subscription to new shares will close on Aug. 5.

Rights issue holders are allowed to exercise their right to subscribe to new shares (in full or in part) up to the number 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, the remaining shares and fractional shares, if any, will be offered to institutional investors, according to the prospectus. Financial advisors and underwriters, Falcom Financial Services and BLOMINVEST Saudi Arabia will undertake to 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.

Alhokair shareholders approved increasing capital through SAR 307 million rights issue, to boost the company’s solvency and reduce borrowing rates, during the extraordinary general meeting (EGM) held on July 8, according to Argaam.