Trading of Dar Al Takaful rights issue between April 25 and May 8

Dubai:

Dubai Financial Market (DFM) said on Monday that the rights issue of Dar Al Takaful is due to be tradable on the exchange from April 25 until May 8.

The opening price of the rights issue has been set at 23 fils 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 10 per cent down from day two until the end of the trading period. 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 is noteworthy that subscription to Dar Al Takaful new shares will take place 30 April-15 May 2017 to increase the capital to Dh150 million through the issuance of 50 million shares with an issue price of Dh1.

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 among 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.

The rights issue will be solely tradable during the above-mentioned time frame with a distinct trading symbol (DARTAKAFULRI), 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. The rights issue has a preset validity and inevitably loses its value if the owners do not subscribe to the capital increase shares.