Zain KSA approves capital cut by 23%; Tadawul suspends trading for 2 days

Mobile Telecommunication Company Saudi Arabia (Zain KSA) shareholders approved the board of directors’ request to reduce the company’s capital to SAR 4.48 billion from SAR 5.83 billion, during the extraordinary general meeting (EGM) held on Oct. 8, the telco said in a bourse statement.

The step aims to offset the company’s accumulated losses through the cancellation of 135 million shares.

The capital reduction has no material impact on the company’s financial obligations, the statement said.

Additionally, the Saudi Stock Exchange (Tadawul) announced that the fluctuation limit for Zain Saudi shares will be based on a share price of SAR 16.34.

Trading on the company’s shares will be suspended, in accordance to the Listing Rules, for two days, starting Sunday, Oct. 11, to Monday Oct. 12. The move aims to allow the Securities Depository Center Co. (Edaa) to reflect share reduction on investors’ portfolios.

According to the data available with Argaam , the company's general assembly will vote on Oct. 14, 2020, on the board of directors ’recommendation to increase the company's capital from SAR 4.48 billion to SAR 8.98 billion through offering 450 million ordinary shares.