Gulf General says rights trading, subscription to start on July 5

Logo of Gulf General Cooperative Insurance

Gulf General Cooperative Insurance Co. (Gulf General) said subscription to new shares and the rights trading will start on July 5.

Rights trading will end on July 12, and subscription to the new shares will close on July 15, the company said in a bourse statement.

Holders of rights issue are allowed to exercise their right to subscribe in new shares, partially or fully pro rata, up to the number of rights issue available in their portfolios, trading in rights issue. Subscription to new shares for registered shareholders and new investors will be as per the prospectus.

With regard to the details of the remaining offering, in the event that shares remain unsubscribed, those remaining fractional shares (if any) will be offered to institutional investors according to what is mentioned in the prospectus, as will the financial advisor and the underwriter Falcom Financial Services and the underwriter BLOMINVEST Saudi Arabia will undertake to underwrite the rights issue in the event that the entire subscription is not fully covered.

Investors not willing to subscribe will be drawn to the importance of selling 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, whether by way of sale or subscription.

Shareholders of Gulf General approved the recommendation by the board of directors to increase the company's capital by offering rights issue worth SAR 300 million, during the extraordinary general assembly meeting (EGM) held on June 28, Argaam earlier reported.

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