Saudi Enaya begins rights trading, new shares subscription today

Logo of Enaya Cooperative Insurance Co.

Saudi Enaya Cooperative Insurance Co. (Saudi Enaya) begins today, Nov. 10, the subscription period for new shares and rights trading, aimed at increasing capital by 130% to SAR 230 million from SAR 100 million.

Rights trading will end on Nov. 17, while subscription to the new shares will close on Nov. 22.

The company intends to offer 13 million shares, at SAR 10 each, granting each registered shareholder nearly 1.3 rights for every share held on the record date. 

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.

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.