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

15/10/2020 Argaam


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.

 

Details of Capital Hike

Current capital

  SAR 4.48 bln

Number of shares

  448.73 mln

Increase (%)

  100.3% (1.003 rights per share)

New capital

  SAR 8.98 bln

New number of shares

898.73 mln

Method

Offering and listing of 450 million rights issue at a value of SAR 10 per share

Reason 

Capitalization part of due amounts to Zain Kuwait and Murabaha facility payment

Record date

  Oct.14, 2020 (those registered in the company’s shareholders registry by Oct. 18, 2020)

 

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.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.