Batic closes rights trading period today

20/12/2021 Argaam

Logo of Batic Investments and Logistics Co.


Batic Investments and Logistics Co. closes today, Dec. 20, the rights trading period to double its capital to SAR 600 million.

 

The rights trading period started on Dec. 13, while the subscription process to new shares will close on Dec. 23.

 

Batic offers 30 million shares at SAR 10 each, granting each registered shareholder on the record date one right for every share held.

 

Capital Increase Details

Current capital

SAR 300 mln

Number of shares

30 mln

Capital increase (%)

100%

Capital after increase

SAR 600 mln

Number of shares after increase

60 mln

 

Rights Issue Highlights

Number of rights shares

30 mln

Offering price per share

SAR 10

Issuance size

SAR 300 mln

Eligibility ratio

Each registered shareholder shall have one right for every share held

Record date

Dec. 6, 2021 (Shareholders of record by the close of trading on the second day following the EGM date)

Rights trading period

From Dec. 13-16

Subscription to new shares period

From Dec. 13-23

Use of rights issue proceeds

Partial repayment of the bridge loan to Bank AlJazira to acquire 35.8% of Smart Cities Solutions Co.

SAR 107.87 mln

Cost to acquire Smart Cities Solutions Co.

SAR 1.31 mln

Financing Smart Cities Solutions Co. to pay its dues to AMNCO

SAR 20.00 mln

Financing Smart Cities Solutions Co. to pay the remaining rent due to Eastern Region Municipality, related to smart parking project

SAR 24.44 mln

Repayment of short-term loans

SAR 40.00 mln

Financing smart parking projects

SAR 46.20 mln

Supporting working capital of AlShifa Medical Technology Co.

SAR 5.00 mln

Acquiring income-generating assets and businesses

SAR 50.00 mln

Issue costs

SAR 5.18 mln

 

The 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. Trading in rights issue and subscription to new shares for registered shareholders and new investors will be as per the prospectus.

 

If some shares remain unsubscribed, the rump and fractional shares will be offered to institutional investors, according to the prospectus.

 

AlJazira Capital 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.

 

According to data compiled by Argaam, shareholders of Batic are set to vote on the transactions and contracts made between Batic and Hazon, during the ordinary general assembly meeting (OGM) scheduled for Dec. 29.

 

The step comes following shareholders’ refusal to approve the contract under which Batic will buy Hazon’s entire stake, which represents 20 shares, or 2% of Smart City Solutions for Communications and Information Technology, as well as its rights and obligations at a total value of SAR 6 million without any preferential conditions.

 

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