The Saudi Mobile Telecommunications Company (Zain Saudi) announced the approval of the extraordinary general assembly on the company’s board of directors ’recommendation to increase the company’s capital to 8.9 billion riyals by 100.3 percent, by offering and listing priority rights shares with 450 million ordinary shares.
The number of shares after the increase reached more than 898 million shares, an increase of 1.003 per share.
The company explained that the reason for the capital increase is the capitalization of part of the sums owed by “Zain Saudi Arabia” to “Zain Kuwait”, and the payment of part of the murabaha facility.
Shareholders who own shares will be eligible on the day of the extraordinary general meeting who are registered in the company’s shareholders ’register at the Securities Depository Center Company (Deposit Center) at the end of the second trading day following the date of the extraordinary general meeting on October 18th. Zain Saudi Arabia announced the determination of the period for trading of priority rights and the subscription for new shares, and the beginning of the period of trading of priority rights and the subscription for new shares will be on October 19.
The rights issue trading period ends on October 26, while the subscription phase for new shares ends on March 29.
After the association approved the capital increase, Zain’s share rose to a maximum of 9.9 percent in response to the news, to 17.66 riyals.