Clarification announcement from the CMA regarding companies applying to increase their capital through rights issue offering

Sunday, June 12, 2016 at 9:42 AM

Sun Jun 12, 2016 09:42

The Capital Market Authority (CMA) would like to clarify that the listed companies (“The Companies”) applying for a capital increase through rights issue offering are:

1.    Wataniya Insurance Company (Wataniya)
A decision regarding the Company's application will be made in two weeks from this announcement. 
2.    Takween Advanced Industries Company (Takween)
The Company and its financial advisor are in the progress to complete the application file. 

As of the date of this announcement, the CMA does not have any additional capital increase applications through rights issue offering.

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

1.  The Companies looking to increase their capital through rights issue offering should comply, in addition to any other relevant steps and legal procedures, with the following important steps:

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