Zain KSA to begin US$1.6 billion rights issue

ZainMobile telecommunications company Zain KSA has announced that it will start a rights issue on July 10 that will close eight days later

"The issuing price will be SAR 10 (US$2.6) without a premium, keeping in mind that the shares offered are 600 million shares," said a statement from the company.

The announcement follows the decisions taken at an general assembly meeting of Zain KSA shareholders, which was focused on restructuring the company’s share capital.

The underwriting banks, in a syndicate led by Saudi Fransi Capital and Al Rajhi Capital, have committed to underwrite the planned US$1.6 billion rights issue.

Commenting on the signing of the underwriting agreement, Fraser Curley, Zain KSA chief executive officer, said, “We are excited about reaching this important milestone in the Zain KSA rights issue as the company makes continued progress in achieving its strategic goals.”

The receiving banks are Banque Saudi Fransi, Al Rajhi Bank, Alinma Bank, Bank AlBilad, The National Commercial Bank, Samba Financial Group, Saudi Hollandi Bank, Arab National Bank, Bank Aljazira, Riyad Bank, SABB and The Saudi Investment Bank.

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