Salama to start rights trading, subscription to new shares on Nov. 9

Logo of Salama Cooperative Insurance Co.

Salama Cooperative Insurance Co. announced today, Nov. 6, that subscriptions to new shares and rights trading will begin on Nov. 9 and end on Nov. 16, while subscriptions to new shares will close on Nov. 21.

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 subscriptions to new shares for registered shareholders and new investors will be in accordance with the prospectus, according to a statement to Tadawul.

The remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus. Alawwal Capital will underwrite the rights issue if the entire subscription is not fully covered, the statement added.

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.

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