Batic rights subscription period ends today

Logo of Batic Investments and Logistics Co.

Batic Investments and Logistics Co.’s rights subscription period ends today, Dec. 23.

Subscription period started on Dec. 13, to increase the company’s capital by 100% from SAR 300 million to SAR 600 million, through a rights issue of 30 million shares at SAR 10 per share, granting each registered shareholder on the record date one right for every share held.

Rights trading period, which also started on Dec. 13, ended on Dec. 20.

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.

If some shares remain unsubscribed, the rump and fractional shares will be offered to institutional investors, according to the prospectus.

AlJazira 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.

According to data compiled by Argaam, shareholders of Batic are set to vote on the transactions and contracts made between Batic and Hazon, during the ordinary general assembly meeting (OGM) scheduled for Dec. 29.

The step comes following shareholders’ refusal to approve the contract under which Batic will buy Hazon’s entire stake, which represents 20 shares, or 2% of Smart City Solutions for Communications and Information Technology, as well as its rights and obligations at a total value of SAR 6 million without any preferential conditions.

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