DFM announces trading of Al Ramz Corporation’s rights issue

DUBAI, – Dubai Financial Market (DFM) announced on Monday that the rights issue of “Al Ramz Corporation Investment and Development” is due to be tradable on the exchange between Tuesday, 25th October, and Monday, 7th November 2016.

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, said DFM in a press release today.

The opening price of the rights issue has been set at Six 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 percent up and 10 percent 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.

Source: Emirates News Agency