Ash-Sharqiyah sets period for rights issue, new shares subscription

Logo of Ash-Sharqiyah Development Co.

Ash-Sharqiyah Development Co. determined the period of its rights issue trading and subscription to the new shares, according to a statement to Tadawul.

Both will start on May 11. However, rights issue trading will end on May 18, while the period for subscription to new shares will expire on April 23, the company noted.

Right-holders may exercise their subscription right, in whole or in part, to the new shares in proportion to the rights existing in their portfolios. For registered shareholders and new investors, rights trading and new shares subscription will be as per the prospectus.

Unsubscribed shares and fractional shares, if any, will be offered to institutional investors, in accordance with the details set in the prospectus.

AlKhair Capital will underwrite the new shares that remain unsubscribed after the rump offering, the statement added.

Investors not willing to participate in the subscription period should consider the importance of selling their rights during the specified trading period. This is to avoid being exposed to a loss in the value of their investment portfolios for not benefiting from their rights by sale or subscription.