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Frequently Asked Questions

How does the subscription process work?

The subscription process occurs by the submission of subscription applications at any of the branches of the recipient bodies (mentioned in the prospectus) or through trading applications or any other channels the brokers provides to his clients.

Is subscription possible during the weekend?

No, it is not possible.

What is the value of the Right at the beginning of trading?

The opening price of the share will be the difference between the closing price of the company’s share on the day preceding the inclusion of the Right and the offering price (Indicative Value). For example, if the share’s closing price on the preceding day is SAR 35 and the offering price is SAR 10, then the opening price of the Pre-emptive Rights will be 35-10 = SAR 25.

What are Pre-emptive Rights?

Pre-emptive Rights are tradable securities issued by a Company which grant their holder the right to subscribe for new cash Shares offered upon the extraordinary General Assembly’s approval of the capital increase through the issuance of new Shares. Each pre-emptive right grants its holder the right to subscribe for one new Share at the offer price.

Can the holder of Pre-Emptive Rights sell or assign the Rights after the end of the trading period?

No, the holder may not. After the end of the trading period, the holder will only be eligible to exercise their Right to subscribe to the capital increase or not. In case of refraining from exercising the Rights, the investor may be subject to loss or depreciation in their investment portfolio.

What are the implications on holders of Pre-Emptive Rights who have not taken any action(s) during the subscription phase?

In case of refraining from subscription to all of the new shares during the first and second phases, the remaining new shares will be offered for subscription to be managed by the subscription manager and the value of indemnity, if any, to the holder of Rights will be calculated after deducting the subscription value and any fees according to the standards specified in the prospectus.

Is it possible to sell a part of these Rights in order to subscribe to the new shares?

Yes, the investor can sell a part of these Rights and use the proceeds of this sale utilize the remaining Rights for subscription to the new shares.

Is the purchaser of additional Rights eligible to trade the additional purchased rights?

Yes, the purchaser is eligible to sell the Rights and buy other Rights during the trading period.

Can Registered Shareholders subscribe to additional shares?

The Registered shareholders can subscribe to additional shares by buying new Rights during the trading period.

Are the holders of share certificates eligible to subscribe and trade?

Yes, the holders of share certificates are eligible to subscribe, however, they can only trade after depositing the certificates in electronic portfolios through the recipient companies or Securities Depository Center Company (“Edaa”) and provision of the necessary documents.

Will there be any additional fees charged for the processes of trading Pre-Emptive Rights?

The currently applied commission on trading pre-emptive rights (buy/sell) is (15.5 bps) fifteen point five basis points at maximum, which could be subject to change in future.

When is the record day of updating Tradable Rights?

Investors registered in the issuer’s share book at the end of the day (inventory i.e. settled position) are eligible to receive CA’s proceeds. And it is two business days after EGM.

Who has the eligibility to attend the EGM?

Investors registered in issuer’s share book at the end of the day (inventory i.e. settled position) are eligible to attend GM and vote.

How will the investor be notified of Pre-Emptive Rights Issuance?

The investor is notified of the Pre-Emptive Rights through Tadawulaty portal services provided by Securities Depository Center Company (“Edaa”) and short text messages to be sent through the brokers.

What is the duration of trading and subscription?

Both trading and subscription will start simultaneously until trading ends on day 6, while subscription continues until day 9. The trading period shall be determined in the prospectus and announcements of the issuing Company.

Can unregistered shareholders subscribe to the additional offered shares?

The unregistered shareholders can subscribe after buying the Pre-emptive Rights during the trading period.

How many Rights will be granted to each registered investor?

Based on their eligibility and in proportion to the percentage they each own in the share capital by the end date of the extraordinary General Assembly meeting.

What is the calculation method to determine the exact number of rights for each registered investor?

This will be calculated by dividing the number of offered shares by the number of existed and issued shares. For example, if the number of the issued shares of company (A) is 1000 shares and this company increased its capital by offering 200 new shares, the offering ratio will be 200/1000 = 1/5, therefore each registered investor will earn one right for every five shares.

If an investor has more than one portfolio with multiple brokers, how will Rights be calculated for this investor?

The investor’s share will be distributed on the portfolios owned by the investor according to the ownership rate in each portfolio at the same offering ratio announced by the company. In case of the presence of fractions, these fractions will be summed up and if they formed one or more integers, the integer will be added to the portfolio in which the investor owns the largest quantity of Rights.

Will these Rights be added to registered investors' portfolios under the same name/code of the shares or there will be another name for them?

The acquired pre-emptive rights will appear in the portfolios of Registered Shareholders under a new symbol that designates these rights, and cannot be traded and subscribed for except in accordance with what is disclosed in the Prospectus.

What is the record day of Tradable Rights?

It is the day where the rights are credited to the investors’ accounts.