The Saudi Stock Exchange “Tadawul” announces that the enhanced framework for trading and subscribing to Rights of listed companies shall be applied in the next batch of offerings to increase capital through rights issue.
The enhanced framework for Tradable Rights includes the following features:
- Registered and new investors can subscribe in one period instead of two separated periods.
- All investors are allowed to immediately subscribe after settlement of bought Rights without waiting for a new subscription period.
- Ability to enter subscription requests through trading platforms by which sell and buy orders are entered. In addition to ability to subscribe through any other channel provided by the broker.
- Framework period for Rights shortened to a maximum of (28) days instead of (34) days.
Through applying this new framework, Tadawul aims to safeguard the interest of retail investors by facilitating the process of subscription to Rights, and ensuring that ample time is given to all investors to trade and subscribe in Rights.
It is equally important to note that enhancing the framework for Tradable Rights is part of Tadawul’s efforts to constantly improve products and services provided to investors and market participants. Tadawul also aims to introduce new tradable investment products to diversify and further expand available investment channels in the market.
For more information regarding the new framework for Tradable Rights, please visit our Knowledge Center by clicking here.
