Zain KSA approves capital cut by 23%; Tadawul suspends trading for 2 days

11/10/2020 Argaam


Mobile Telecommunication Company Saudi Arabia (Zain KSA) shareholders approved the board of directors’ request to reduce the company’s capital to SAR 4.48 billion from SAR 5.83 billion, during the extraordinary general meeting (EGM) held on Oct. 8, the telco said in a bourse statement.

 

The step aims to offset the company’s accumulated losses through the cancellation of 135 million shares.

 

Key Figures of the Capital Reduction

Current capital

SAR 5.83 bln

Number of shares

583.73 mln

Percentage of reduction

23% (23 shares for every 100 shares owned)

New capital

SAR 4.48 bln

New number of shares

448.73 mln

Method

Cancelling 135 mln shares

Reason 

Amortization of most of the company's accumulated losses

Record date

The second trading day following the EGM

 

The capital reduction has no material impact on the company’s financial obligations, the statement said.

 

Additionally, the Saudi Stock Exchange (Tadawul) announced that the fluctuation limit for Zain Saudi shares will be based on a share price of SAR 16.34.

 

Trading on the company’s shares will be suspended, in accordance to the Listing Rules, for two days, starting Sunday, Oct. 11, to Monday Oct. 12. The move aims to allow the Securities Depository Center Co. (Edaa) to reflect share reduction on investors’ portfolios.

 

According to the data available with Argaam , the company's general assembly will vote on Oct. 14, 2020, on the board of directors ’recommendation to increase the company's capital from SAR 4.48 billion to SAR 8.98 billion through offering 450 million ordinary shares.

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