Maaden commences the IPO of its rights issue on November 18th
The Extra Ordinary General Assembly of Saudi Arabia Mining Company’s (Ma’aden) approved a capital raise from SAR 9250m to SAR 11685m through a rights issue.
The company determined the following details for the IPO on a statement to Tadawul:
First: Registered Shareholders and the public shall be able to participate in the IPO during the period from Tuesday to 18/11/2014 until the close of trading on Tuesday 02/12/2014.
The IPO is to be divided into two phases:
a) First IPO phase: Starts on Tuesday 25/01/1436H (corresponding to 18/11/2014G) and shall continue until the end of the day on Tuesday 02/02/1436H (corresponding to 27/11/2014G).
b) Second IPO phase: Starts on Sunday 08/02/1436H (corresponding to 30/11/2014G) and continues until the end of the day on Tuesday 10/02/1436H (corresponding to 02/12/2014G).
During those periods; all holders of Rights, whether Registered Shareholders or persons who purchased Rights during the trading period coinciding with the First IPO phase shall be allowed to exercise their right to subscribe to the New Shares.
Trading of Rights during this phase is not possible.
If unsubscribed shares remain after the First and Second IPO phases, the remaining shares will be offered through the Rump Offering as described in the prospectus.
Second: the eligibility ratio is 1 right for each shareholder, who holds 3.8 shares registered in the Company’s share register at the end of the Extraordinary General Assembly meeting approving the Company’s capital increase.
Third: The Issuance price is SAR 23 per share.
Fourth: Shareholders, who do not wish to subscribe to the New Shares, may sell their allocation of Rights during the trading period mentioned above to avoid the decrease in the value of their investment portfolios.
The following tables indicate the rights issue IPO details:
Capital raise details
Current number of shares
Percentage of the increase (%)
Capital after increase
The rights issue
Number of new rights issue shares
SAR 23 per share
SAR 5.6 billion
SAR 21 million of total proceeds will be used to cover the capital raise costs.
Remaining amount will finance the company’s investments at Maaden Waad Al-Shamal Phosphate Company and its aluminum output project.
Use of IPO proceeds
HSBC & GIB Capital
Aljazira Capital, GIB Capital & HSBC
Alinma, Al Rajhi, Al Bilad, Arab National, BJAZ, Saudi Fransi, RIBL, SAMBA, Saudi Hollandi Bank, NCB, SABB & SIBC