Ash-Sharqiyah begins rights trading, new shares subscription today

Logo of Ash-Sharqiyah Development Co.

Ash-Sharqiyah Development Co.’s subscription to new shares and rights trading begins today, May 11, to increase capital by 300% or SAR 225 million, to SAR 300 million from SAR 75 million.

Rights trading will end on May 18, while subscription to the new shares will close on May 23.

The company intends to offer 22.5 million shares at SAR 10 each, granting each registered shareholder nearly three 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.

Unsubscribed shares, remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus. The underwriter will underwrite the rights of Ash-Sharqiyah if the subscription process 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.

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