17/02/2015 07:57 AST
JEDDAH - AXA Cooperative Insurance Company signed Sunday a rights issue management agreement to increase its capital with the Saudi Fransi Capital Company, the Financial Advisor, Lead Manager, and Underwriter of AXA rights issue offering.
The occasion was attended by representatives of receiving agents, Saudi Fransi Bank, Riyadh Bank, National Commercial Bank, Arab National Bank and Samba Financial Group.
Yasser Al Rumayyan, CEO of Saudi Fransi Capital, the Lead Manager and Underwriter, stressed that the company is committed to cover AXA rights issue offering for the increase of its capital from SR200 million to SR450 million through the offering of rights issue shares.
Al Rumayyan said the Saudi Fransi Capital, in cooperation with receiving agents, has taken all arrangements necessary for the offering and the first phase will start on Feb. 17, 2015 and will last up to Feb. 26, 2015.
During this phase, only registered shareholders may exercise their rights to subscribe (in whole or in part) for the new shares up to the number of rights deposited in their accounts after the offering EGM.
The first subscription phase coincides with the rights issue trading phase, during which registered shareholders and the public may trade in the rights.
The second offering phase will start on March 1 until March 3, 2015. During this phase, all rights' holders, whether registered shareholders or purchasers of rights during the trading period, may exercise their right to subscribe for the new shares.
No trading of rights will be permitted during this period. Al Rumayyan confirmed that Saudi Fransi Capital is following up with the receiving agents and all necessary arrangements have been made which will enable shareholders to subscribe via branches of receiving agents across Kingdom and through the multiple electronic tools available around the clock throughout the offering period.
He said the prospectus is available on the Capital Market Authority Website www.cma.org.sa, AXA website www.axa-cooperative.com and the website of the Saudi Fransi Capital, the financial advisor, lead manager and underwriter.
Paul Adamson, Managing Director of AXA Cooperative, said subscription to AXA rights issue provides three choices for the shareholders registered on the date of EGM approving rights issue: Exercise their right to subscribe to all rights issue deposited in their portfolios to maintain percentage; sell their acquired rights or part thereof; or purchase additional rights, since the system allows entry of purchase or sell orders via organizational investors.
He further said AXA Cooperative offering, in line with rights issue mechanism, is subject to three phases as follows: The first phase will last for 10 days and coincides with the rights issue trading phase, during which registered shareholders and the public may trade in the rights. - SG
Saudi Gazette
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