NADEC starts rights trading, subscription to new shares today

Logo of National Agricultural Development Co. (NADEC) 

National Agricultural Development Co. (NADEC) starts today, Nov. 9, the subscription to new shares and rights trading to increase its capital from SAR 1.01 billion to SAR 3.01 billion.

The rights trading period will end on Nov. 16, while subscription to new shares will run till Nov. 21.

The capital hike aims to raise the company’s financial solvency and allow it to implement strategic and operational plans.

The step also aims to support NADEC’s future activities to strengthen its position in the food markets locally and regionally, within the framework of promoting the company’s current business, and expanding the scope of its products by entering into new activities.

The food and beverages producer plans to be an integrated food entity.

NADEC will offer 200 million shares at a nominal value of SAR 10 each to increase capital by 196.8%. Each shareholder will be granted nearly 1.9677 rights for each existing share.

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.

Unsubscribed shares, remaining and fractional shares, if any, will be offered to institutional investors, according to the prospectus. The underwriter will underwrite the rights 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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