Savola Group’s new rights issue has initially attracted around SAR 5.6 billion ($1.5 billion) worth of subscription.

The Saudi Arabian conglomerate said that more than 564 million out of the 600 million shares offered have been subscribed, representing a 94.15% coverage.

The remaining unsubscribed shares of more than 35 million will be open to subscription to institutional investors, the company said in a filing with the Saudi Stock Exchange (Tadawul).

The rump offering will run from September 15 to 16.

The company had decided to offer 600 million new ordinary shares to raise its capital by SAR 6 billion to bolster its finances, as it looks to meet debt payments and fund future investments.

At the end of last year, the company’s borrowings, which include unsecured bank loans, stood at SAR 8.6 billion.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com