Shams begins rights trading, new shares subscription today

Logo of Tourism Enterprise Co. 

Tourism Enterprise Co. (Shams) subscription to new shares and rights trading begins today, Nov. 27, to increase capital by 1,000% or SAR 525.67 million, to SAR 578.24 million from SAR 52.57 million.

Rights trading will end on Dec. 4, while subscription to the new shares will close on Dec. 7.

The company intends to offer 52.57 million shares at SAR 10 each, granting each registered shareholder nearly 10 rights for every share held on the record date.

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. The underwriter will underwrite the rights of Shams if the subscription process 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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