Gulf General rights trading, subscription period begins today

Logo of Gulf General Cooperative Insurance Co.

Gulf General Cooperative Insurance Co. subscription to new shares and rights trading begins today, July 5, to increase capital from SAR 200 million to SAR 500 million.

Rights trading will end on July 12, and subscription to the new shares will close on July 15.

The company intends to offer 30 million shares at SAR 10 per share, granting each registered shareholder at the record date nearly 1.5 rights for each share held.

Rights issue holders are allowed to exercise their right to subscribe to new shares (in full or in part) up to the number 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, the remaining shares and fractional shares, if any, will be offered to institutional investors, according to the prospectus. The financial advisor and the underwriter Falcom Financial Services and the underwriter BLOMINVEST will underwrite the rights issue if the entire subscription 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.

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