Zain Saudi shareholders approve capital hike to SAR 8.98 bln through rights issue

Mobile Telecommunication Company Saudi Arabia’s (Zain Saudi) shareholders approved the board's recommendation on a capital increase, during the company's extraordinary general meeting (EGM) held on Oct.14, 2020, the company said in a bourse filing.

Capital will be increased from SAR 4.48 billion to SAR 8.98 billion through a SAR 450 million rights issue.

The capital hike aims to capitalize part of the due amounts to Zain Kuwait and payment of the Murabaha facility.

Shareholders also approved amending Article 7 of the company’s articles of association with regards to capital and Article 8 with regards to share subscription.

Meanwhile, Zain Saudi’s daily trading fluctuation limit after its capital hike will be based on a share price of SAR 13.82 as of today, the Saudi Stock Exchange (Tadawul) said in a separate statement.

Meanwhile, all the outstanding orders will be canceled.

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios by Oct. 19, 2020, the statement added.

According to the data available with Argaam , the company's general assembly recently approved the board of directors ’recommendation to reduce the company's capital by 23%, from SAR 5.83 billion to SAR 4.48 billion, by cancelling 135 million shares to offset accumulated losses.