Wataniya Insurance to launch rights trading, subscription to new shares on April 25

Wataniya Insurance Co. announced that rights trading and subscription to the new shares will start on April 25.

The rights trading period will end on May 9, while the subscription process will close on May 12.

Rights issue holders are allowed to exercise their right to subscribe to new shares (in full or in part) up to the number of rights available in their portfolios. Rights trading and subscription to the new shares for registered shareholders and new investors will be as per the prospectus.  

In the event that shares remain unsubscribed, the rump and fractional shares (if any) will be offered to institutional investors according to what is mentioned in the prospectus. The underwriter Arab National Investment Co. will act as underwriter on Wataniya’s rights issue in case that the entire subscription is not fully covered.  

Investors not willing to subscribe should sell the rights they hold during the specified trading period to avoid any 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, the company’s shareholders approved on April 13 the board of directors’ recommendation to increase capital to SAR 400 million through a SAR 200 million rights issue (one right per share).