Saudi Enaya begins rights trading, new shares subscription today

10/11/2022 Argaam Special
Logo ofEnaya Cooperative Insurance Co.

Logo of Enaya Cooperative Insurance Co.


Saudi Enaya Cooperative Insurance Co. (Saudi Enaya) begins today, Nov. 10, the subscription period for new shares and rights trading, aimed at increasing capital by 130% to SAR 230 million from SAR 100 million.

 

Rights trading will end on Nov. 17, while subscription to the new shares will close on Nov. 22.

 

The company intends to offer 13 million shares, at SAR 10 each, granting each registered shareholder nearly 1.3 rights for every share held on the record date. 

 

Key Highlights of Capital Increase

Current Capital

SAR 100 mln

Number of Shares

10 mln

Percentage of Increase

130% of pre-hike capital

New Capital

SAR 230 mln

New Number of Shares

23 mln

 

Key Highlights of Rights Issue

Number of Offered Shares

13 mln

Offering Price

SAR 10/share

Offering Size

SAR 130 mln

Eligibility Ratio

Nearly 1.3 rights for every share

Record Date

Shareholders of record on Nov. 6 and those registered with Edaa on the second trading day following the extraordinary general meeting (EGM) date

Proceeds

Bank deposits

SAR 53.8  mln

Investment funds

SAR 26.9  mln

Bonds and sukuk

SAR 26.9  mln

Statutory deposit

SAR 12.0 mln

Offering cost

SAR 10.4 mln

 

Total

SAR 130 mln

 

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.

 

In the event that shares remain unsubscribed, remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus.

  

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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