Gulf Union Alahlia sets period for rights issue trading, new shares subscription

Logo of Gulf Union Alahlia Cooperative Insurance Co.

Gulf Union Alahlia Cooperative Insurance Co. said the period for rights issue trading and new shares subscription will begin on May 9.

In a statement to Tadawul, the insurer said rights issue trading will end on May 16, while the subscription period for the new shares will end on May 19.

Holders of right issues are allowed to exercise their right to subscribe in new shares, in full or in part, up to the number of right issues available in their portfolios. Trading in right issues 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, in accordance with the prospectus.

The financial advisor, lead manager and underwriter – Yaqeen Capital – will underwrite the rights issue of Gulf Union Alahlia in the event that the entire subscription is not fully covered.

Investors not willing to subscribe must sell the right issues they hold 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.

Shareholders of Gulf Union Alahlia approved the board’s recommendation to increase the company’s capital through a SAR 229.5 million rights issue, during the extraordinary general assembly meeting (EGM) held on April 20, Argaam reported.

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