Wafrah to start rights trading, new shares subscription on June 20

Logo of Wafrah for Industry and Development Co. 

Wafrah for Industry and Development Co. said the trading period for the rights issue and subscription for new shares will begin on June 20.

In a statement to Tadawul, Wafrah said the rights trading will close on June 27, while the subscription to the new shares will end on June 30.

Rights holders are allowed to exercise their right to subscribe to new shares, in full or in part, up to the number of right issues available in their portfolios. Trading in rights and subscription to new shares for registered shareholders and new investors will be in accordance to the prospectus.

The remaining and fractional shares, if any, 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 their rights during the specified trading period to avoid the 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.

On June 14, Wafrah shareholders approved a capital increase via SAR 154.3 million rights issue, Argaam reported.

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