Shams to begin rights trading, new shares subscription on Nov. 24

Logo of Tourism Enterprise Co.

Tourism Enterprise Co.’s (Shams) subscription to new shares and rights trading will begin on Nov. 24, the company said in a statement to Tadawul.

Rights trading will end on Dec. 1, while subscription to the new shares will close on Dec. 6.

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. Co-underwriters mentioned in the prospectus will underwrite the new shares that remain unsubscribed for after the rump offering.

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.

Eligibility criteria includes shareholders who own shares at the end of the trading day of the extraordinary general assembly and who are registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the extraordinary general assembly that was held on Nov. 20.

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