CMA approves Zain Saudi’s capital cut, rights issue requests

Saudi Arabia’s Capital Market Authority (CMA) approved a request by Mobile Telecommunication Company Saudi Arabia (Zain Saudi) to reduce its capital to SAR 4.487 billion from SAR 5.837 billion, the market regulator said in a statement on Thursday.

Accordingly, the number of shares will be reduced from 583.73 million to 448.73 million.

The CMA nod is conditional on the company’s extraordinary general meeting (EGM) approval and completion of necessary procedures.

In addition, the regulator approved the company’s request increase capital through a SAR 4.5 billion rights issue.

The increase will be limited to the shareholders who are registered in the shareholders registry at the Security Depository Center Co. (Edaa) as of the closing of the second trading day after the EGM, which will be determined by the board of directors at a later date.

The offering price and the number of shares offered for subscription will be determined after market closing of the same day in which the EGM meeting is to be held.