INDUSTRIAL NEWS
Gulfa Mineral Water Industries rights issue trading set for June 21
Jun 19, 2020 8:00 AM
Dubai Financial Market (DFM) has announced that the rights issue of Gulfa Mineral Water and Processing Industries Company is due to be tradable on the exchange between June 21 and July 2. Trading of the...
Dubai Financial Market (DFM) has announced that the rights issue of Gulfa Mineral Water and Processing Industries Company is due to be tradable on the exchange between June 21 and July 2.
Trading of the Rights Issue enables existing shareholders of the company who do not wish to subscribe to the new shares, which the company plans to issue as part of its capital increase, to sell all or part of their rights to other investors who do wish to subscribe.
The Rights Issue is a financial instrument representing the rights that are legally granted to the company's shareholders to have priority in subscribing for the company's capital increase shares that will be issued.
The rights are distributed amongst shareholders in proportion to the number of shares they own and shall be recorded in their accounts with brokerage or custody firms if the original shares were recorded in the shareholders' accounts with them, whereas it shall be recorded in their accounts with clearing if the original shares were recorded with the clearing house.
According to DFM, the shareholder will receive a right for every three shares owned by the shareholder and held on the eligibility date.
The Dubai exchange reiterated that the rights issue will be solely tradable between June 21 and July 2 with a distinct trading symbol (GULFA-RI20), not the symbol of the main stock of the respective company.
The priority right to subscribe for the capital increase shares shall be given to the owners of the rights issue at the end of the clearing and settlement cycle for the trades of such rights, saidtghe bourse in its statement.
The rights issue has a pre-set validity and inevitably loses its value if the owners do not subscribe to the capital increase shares, it added.
According to DFM, the opening price of the rights issue has been set at AED14.1 ($3.83) based on the company’s adjusted share price on the market minus the issuing price of the new shares.
The rights issue will be free-floated on its inaugural day only, while price movement will be in line with DFM’s fluctuation range of 15 per cent up and 5 per cent down from day two until the end of the trading period, said the exchange in its statement.
The rights issue is subject to all regulations of trading, clearing, settlement and commissions in effect in the market will be applicable to trades of the rights issue, which are not subject to mortgage, or to margin trading, it added.-TradeArabia News Service