Raydan Food says rights trading, new shares subscription to begin on Aug. 9

A branch of Raydan Food

Raydan Food Co. said subscription to new shares and the rights trading will start on Aug. 9.

Rights trading will end on Aug. 16, and subscription to the new shares will close on Aug. 19, the company said in a bourse statement.

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. FALCOM Financial Services 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.

According to data compiled by Argaam, shareholders of Raydan Food approved, during a meeting on July 13, to increase the company's capital by offering SAR 112.5 million rights issue.

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