Logo of Al-Omran Industries and Trading Co.
Al-Omran Industries and Trading Co. starts today, Nov. 14, the subscription to new shares and rights trading to increase its capital from SAR 60 million to SAR 120 million.
Rights trading will end on Nov. 21, while subscription to the new shares will close on Nov. 26.
The company plans to offer six million shares at a nominal value of SAR 10 each to increase capital by 100%. Each shareholder will be granted one right for each share held.
Capital Increase Details
Current capital
SAR 60 mln
Current number of shares
6 mln
Capital increase (%)
100%
Capital after increase
SAR 120 mln
Number of shares after increase
12 mln
Rights Issue Details
Offered shares
6 mln
Offer price
SAR 10
Issue size
SAR 60 mln
Rights subscription
Nov. 14-26, 2023
Rights trading
Nov. 14-21, 2023
Reason
Supporting future plans, cutting borrowing rate and developing the company’s plants
Record date
Nov. 8, 2023
Eligibility ratio
Each shareholder will be granted one right for every share held
Rights issue proceeds
Construction costs to build a new factory and transfer the existing machinery and equipment in the refrigeration, shelves, and air conditioning plant
SAR 28 mln
Costs of purchasing new machinery and equipment
SAR 11 mln
Factory workers’ accommodation costs
SAR 2 mln
Repayment of bank loans
SAR 14 mln
Purchase of cars
SAR 2 mln
Offering fees
SAR 3 mln
Total
SAR 60 mln
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. Rights trading and subscription to new shares for registered shareholders and new investors will be as per the prospectus.
Unsubscribed 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 during the specified trading period to avoid any decline in the value of their investment portfolios as a result of not selling or subscribing, the company said.
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