Al Olaa Company owns 100 million shares and is currently trading at SAR 40 per share. To provide financing for expansion, Al Olaa decided to give investors exercises right to buy one additional share for every 5 shares owned in a 1:5. How much should each share be worth after the rights issue if they previously sold for SAR 35 each?

Al Olaa Company owns 100 million shares and is currently trading at SAR 40 per share. To provide financing for expansion, Al Olaa decided to give investors exercises right to buy one additional share for every 5 shares owned in a 1:5. How much should each share be worth after the rights issue if they previously sold for SAR 35 each?