Alkhaleej Training rights trading, new shares subscription begins today

08/11/2021 Argaam Special

Logo of Alkhaleej Training and Education


Alkhaleej Training and Education Co.’s subscription to new shares and rights trading begins today, Nov. 8, to increase capital from SAR 450 million to SAR 650 million.

 

Rights trading will end on Nov. 15, while subscription to the new shares will close on Nov. 18.

 

The company intends to offer 20 million shares at SAR 10 per share, granting each registered shareholder at the record date nearly 0.44 right for each share held.

 

Details of Capital Increase 

Current capital 

SAR 450 mln 

Number of shares 

45 mln 

Capital increase (%)

44.4% 

Capital after increase 

SAR 650 mln 

Number of shares after increase 

65 mln 

 

Rights Issue Details 

Number of shares offered 

20 mln 

Offering price  

SAR 10 per share 

Issue size 

SAR 200 mln 

Rights coefficient 

Each registered shareholder will be granted 0.44 right for every share owned 

Rights trading period

Nov. 8-15

Subscription period

Nov. 8-18

Record date 

Nov. 3 and shareholders registered at the company’s registry on Nov. 7 

Rights issue proceeds 

Expansion in the education sector through the acquisition of schools 

SAR 96 mln 

Partial repayment of short-term facilities 

SAR 100 mln 

Offering costs 

SAR 4 mln 

 

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, remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus.

 

ANB Invest 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, the company said.

 

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