Logo of Naseej International Trading Co.
Naseej International Trading Co.’s subscription to new shares and rights trading begins today, Nov. 9, to increase capital from SAR 61.6 million to SAR 211.6 million.
Rights trading will end on Nov. 16, while subscription to the new shares will close on Nov. 21.
The company intends to offer 15 million shares at SAR 10 per share, granting each registered shareholder at the record date nearly 2.434 rights for each share held.
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Details of Capital Increase |
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Current capital |
SAR 61.63 mln |
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Number of shares |
6.16 mln |
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Capital increase (%) |
243.38% |
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Capital after increase |
SAR 211.63 mln |
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Number of shares after increase |
21.16 mln |
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Rights Issue Details |
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Number of shares offered |
15 mln |
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Offering price |
SAR 10 per share |
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Issue size |
SAR 150 mln |
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Rights trading period |
Nov. 9-16 |
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Subscription period |
Nov. 9-21 |
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Reason for capital hike |
To raise the company’s solvency, undertake strategic expansions, improve the financial performance as well as borrowing rates and its related costs. |
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Record date |
Nov. 4 (Shareholders registered with the Securities Depository Center (Edaa) by the end of the second trading day following the EGM date) |
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Rights issue proceeds |
Settlement of term loans with commercial banks |
SAR 86.7 mln |
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Working capital (raw materials for yarn products, rugs, carpets, and purchase of finished products for the commercial sector) |
SAR 45.8 mln |
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Extension of yarn extrusion lines |
SAR 8 mln |
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Upgrading the rug and carpet rolls collection plant |
SAR 2 mln |
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Issue costs |
SAR 7.5 mln |
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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.
Wasatah Capital will underwrite the rights issue if the entire subscription 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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