The Capital Market Authority (CMA) would like to clarify that the listed companies (“ The Companies”)  which applied for a capital increase through the rights issue offering, for the dates starting  7/2/1433H corresponding to 1/1/2012 until 28/2/1435H corresponding to 31/12/2013 are:

1. Allied Cooperative Insurance Group (ACIG)
   The CMA announced approval of the prospectus on 3/9/1433H corresponding to 22/7/2012.
2. Middle East Specialized Cables Company (MESC)
   The CMA  announced approval of the prospectus on 16/8/1434H corresponding to 25/6/2013.
3. AL-Ahlia Insurance Company (Al-Ahlia)
   The Company's application will be presented to the CMA’s Board of Commissioners in the coming weeks.
4. Saudi Arabian for Cooperative Insurance Co. (SAICO)
   The Company announced the withdrawal of its application on 5/3/1435 corresponding to 6/1/2014.
5. Tabuk Agriculture Development Co. (Tabuk Agriculture)
   The Company and its financial advisor are in progress to complete the application file.

As of the date of this announcement, the CMA does not have any additional capital increase applications through the rights issue offering, except for Al-Ahlia and Tabuk Agriculture.

In addition, the CMA would like to further clarify some important points related to the process followed for companies to request a capital increase through rights issue offering mechanism:

1.  Companies looking to increase their capital through the rights issue offering mechanism should follow, in addition to any other relevant steps and legal procedures, several important steps:

• The announcement of Company’s Board of Directors’ recommendation on the capital increase.
• The appointment of an authorized financial advisor to be the main point of contact with the CMA in relation to the application, and to ensure that the issuer has satisfied all listing of securities conditions required for registration and admission.
• The appointment of an underwriter to fully underwrite the offering.
• Submit an complete application file including a prospectus to the CMA to ensure  fulfillment of all the legal requirements as per the Capital Market Law and its Implementing Regulations.
• Provide access to the prospectus by publishing the document on the CMA and Tadawul websites, after the CMA Board of Commissioners approval.
• Hold an extraordinary general assembly to vote on the increase of capital, as required by the Companies Law.

2. An investment decision based on the company's capital increase announcement, or based on the recommendation by the Company’s Board of directors or a prospectus approval by CMA, without reading the prospectus carefully or fully reviewing its contents may involve high risk. Therefore, investors should carefully read the prospectus, which includes detailed information on the company, the offering and risk factors. Thus, providing potential investors the ability to evaluate the viability of investing in the offering, taking into consideration the associated risks. If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to any investment decision.

3. CMA’s Board of Commissioners approval of an offering prospectuses should never be considered as a recommendation to invest in the offering of shares in any specific company. The Boards approval of a prospectuses only means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.