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 are:
- Salama Cooperative Insurance Co (SALAMA)
The Company's application will be presented to the CMA’s Board in two weeks from this announcement. - Alinma Tokio Marine Co (Alinma Tokio Marine)
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 what is mentioned above.
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:
- 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 a 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’s approval.
- Hold an extraordinary general assembly to vote on the increase of capital, as required by the Companies Law.
- 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.
- CMA’s Board approval of offering prospectuses should never be considered as a recommendation to invest in the offering of shares in any specific company. The Board’s approval of a prospectus only means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.
