Zain Saudi says rights trading, subscription to start on Oct.19

Mobile Telecommunication Company Saudi Arabia (Zain Saudi) said subscription to new shares and the rights trading will start on Oct.19, 2020.

Rights trading will end on Oct.26, and subscription to the new shares will close on Oct.29, the company said in a bourse statement.

Rights holders are entitled to subscribe to the new shares partially or fully pro rata. The remaining shares will be reoffered to institutional investors.

Investors not willing to subscribe to the offering should note the importance of selling the rights they hold during the specified trading period to avoid the resulting decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription, the statement added.

In case of under subscription, the financial advisors, lead managers and underwriters, namely Saudi Fransi Capital, Arab National Investment Bank, Al Rajhi Capital, AlJazira Capital, Alinma Investment and Riyad Capital, will subscribe to these rights.

Zain Saudi’s shareholders approved, on Oct.15, a capital hike to SAR 8.98 billion from SAR 4.48 billion, by offering SAR 450 million rights issue, Argaam earlier reported.