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Saudi Paper Manufacturing Company has announced the results of its rights issue trading and the new shares subscription.
In a bourse filing on Sunday, the paperboard manufacturer said more than 9.4 million or 94.04 percent of the 10,000 new shares offered earlier have been subscribed.
As for the unsubscribed shares, there will be a rump offering that will start at 10 am on Tuesday, December 29, 2020 until 5 pm on Wednesday, December 30, 2020.
“Rump shares will be offered to a number of institutional investors, provided that those institutions submit purchase offers for the rump shares, which shall be allocated to institutional investors by giving priority to the highest bid,” the company said.
The company announced this month that it was looking to increase its capital by 100 million Saudi riyals ($26 million) by way of rights issue to acquire raw materials and new machines, as well as pay off part of its bank loans.
Its auditors had reported earlier that the company’s current liabilities exceeded its assets by more than 136 million Saudi riyals.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2020
