Maadaniyah rights trading, new shares subscription begins today

Logo of National Metal Manufacturing and Casting Co.

The subscription to National Metal Manufacturing and Casting Co.’s (Maadaniyah) new shares and rights trading begins today, Nov. 29, to increase capital from SAR 234 million to SAR 354 million.

Rights trading will close on Dec. 6, while subscription to the new shares will end on Dec. 9. 

The company plans to offer 12 million shares at SAR 10 per share, granting each registered shareholder on the record date nearly 0.513 rights for each share held. 

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 of unsubscribed shares, 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.

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