Zain Saudi to start $1.6bn rights issue

Kingdom’s third telecom operator is offering 600 million shares firm says in bourse filing
Zain Saudi to start $1.6bn rights issue
Zain Saudi is offering 600 million shares with an issue price of SAR10, according to the statement.
By Massoud A. Derhally
Sun 08 Jul 2012 11:08 AM

Zain Saudi, the kingdom's third telecom operator, will start a $1.6bn rights issue on July 10 and close on July 17, the company said in a regulatory filing to the Saudi bourse.

The company is offering 600 million shares with an issue price of SAR10, according to the statement.

Saudi Fransi Capital is the lead manager of the telecom operator's issue. Saudi Fransi Capital and Al Rajhi Capital are the co-financial advisers while the list of receiving banks is Banque Saudi Fransi, Al Rajhi Bank, Riyad Bank, the National Commercial Bank, Bank Aljazira, Bank AlBilad, Arab National Bank, Alinma Bank, Samba Financial Group, the Saudi Investment Bank, Saudi Hollandi Bank and SABB.

Earlier this month, shareholders of Zain Saudi voted to reduce the operator's paid up capital to SAR4.8bn from SAR14bn after the company received regulatory approval for the cut in May.

Zain Saudi reported a SAR420m loss in the first quarter of the year, compared with a loss of SAR532m in the same period a year-earlier.

In March, Zain Saudi appointed Fraser Curely, its third chief executive officer in less than six months.

The company which began operations in Saudi Arabia in 2008 has about 6.5 million customers or 16 percent of the market in the kingdom.

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