Saudi Arabian Mining Company (Ma'aden) has announced the subscription period for its SR5.6 billion ($1.5 billion) rights issue will start on Tuesday.

Shareholders can buy shares in the capital increase until December 2, the company said in a bourse statement on Sunday. Shares will be sold at SR23 riyals, with shareholders eligible to purchase one new share for every 3.8 shares they currently own.

The price, as in most rights issues in the Gulf region, represents a substantial discount to the market price of the shares, which stood at SR35.97 at the end of last week.

Investors who aren't shareholders at the beginning of the offer period, but who buy rights to participate in the offer, will only be able to subscribe to the offer between November 30 and December 2.

Ma'aden first announced plans for the rights issue in May, to fund the expansion of its phosphate and gold operations, as well as increase funding for its aluminium business.

HSBC's Saudi Arabian unit will manage the offer. - Reuters