Zain files for capital cut, rights issue

Mobile Telecommunication Co. (Zain) has filed today for regulatory approval of its planned capital decrease and rights issue, the company said in a bourse statement.

The filings were submitted to Capital Market Authority (CMA) and Saudi Stock Exchange (Tadawul). The company appointed Saudi Fransi Capital, Al Rajhi Capital and the Arab National Investment Co. as financial advisors.

Zain will seek approvals from an extraordinary general assembly after securing regulatory approvals.

The company's board had recommended a 38 percent capital cut to SAR 3.6 billion to write off accumulated losses of SAR 2.2 billion, after which it will solicit new capital through a rights issue.