Zain KSA announces 28% capital cut

Zain plans a capital cut and a subsequent capital increase through a rights issue

  
A Saudi trader monitors stocks at the Saudi stock market in Riyadh, Saudi Arabia, January 8, 2020.

A Saudi trader monitors stocks at the Saudi stock market in Riyadh, Saudi Arabia, January 8, 2020.

REUTERS/Ahmed Yosri

Riyadh – The board of the Mobile Telecommunication Company Saudi Arabia (Zain KSA) to amend its recommendation to reduce the company's capital.

The company’s capital will be reduced around 28% from SAR 5.84 billion to SAR 4.23 billion, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Monday.

Furthermote, the capital reduction will be through canceling 160.81 million shares.

The capital reduction, which is is attributed to the amortization of accumulated losses that amounted to SAR 1.6 billion, will become effective at the end of the second trading day following Zain’s extra ordinary general assembly meeting (EGM).

Following the capital reduction, the company plans to increase its capital from to SAR 8.73 billion through a rights issue with a total value of SAR 4.5 billion.

Source: Mubasher

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