The IPO of Ma’aden’s rights issue starts today

The first transhe of Saudi Arabia Mining Company’s (Ma’aden) rights issue IPO commences today and continues till November 27^th, 2014.
 

 Maaden is to raise its capital from SAR 9250m to SAR 11685m through the issuance of 243.5m rights issue shares at SAR 23/share for registered shareholders.

The eligibility ratio is 1 right for each shareholder, who holds 3.8 shares and is registered in the Company’s share register at the end of the Extraordinary General Assembly meeting approving the Company’s capital raise.

According to the new tradable rights framework applied by Tadawul; there is a direct relationship between the price per share and the indicated right value, which is the (closing price per share – the issuance price) as shown in the following table:
 

The company said that the IPO proceeds of SAR 5.6bn will be used, after deducting IPO expenses of SAR 21m, to finance the company’s investments in the phosphate industry, particularly in the building of an integrated facility for phosphate production at Waad Al-Shamal Mineral Industrial City and Ras Al-Khair City, in addition to continued funding for aluminum operations related to the mine and the refinery being constructed by MBAC.