Tihama begins rights trading, new shares subscription today

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co.’s subscription to new shares and rights trading begins today, April 6, to increase capital to SAR 400 million from SAR 50 million.

Rights trading will end on April 13, while subscription to the new shares will close on April 25.

The company intends to offer 35 million shares, at SAR 10 each, in order to increase capital by 700%. Accordingly, each registered shareholder will be granted seven 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. Rights issue trading 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.

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