Ayyan OGM to vote on amendments to rights issue proceeds on Dec. 5

Logo of AYYAN Investment Co.

AYYAN Investment Co.’s shareholders are set to vote on the board's recommendation to amend the use of SAR 200 million in proceeds from the rights issue disclosed in the July 10 prospectus, during the ordinary general meeting (OGM) on Dec. 5.

The company noted the deviation in the use of proceeds stemmed from operational and financing obligations maturing before receiving the capital increase. To maintain operations at Al Salam Medical Services Co., a SAR 226.1 million non-interest-bearing loan was secured from related parties, Al Othman Holding Co.

Following the receipt of the rights issue proceeds, SAR 150 million was used to settle the outstanding balance owed to Al Othman Holding.

The company confirmed that the funds were applied as outlined in the rights issue prospectus, with further details provided in accompanying tables.

Ayyan Investment launched a SAR 200 million rights issue in June to support its operational plans and working capital, with an 84.8% subscription coverage, according to Argaam’s data.

On Aug. 19, 2024, Ayyan signed a binding deal with Dallah Healthcare Co. to sell its 97.4% stake in Al-Ahsa Medical Services, which owns Al-Ahsa Hospital, and its 100% stake in Salam Medical Services, owner of Salam Hospital in Khobar.