Zain Saudi Arabia, the Saudi Arabian subsidiary of Kuwaiti incumbent Zain Telecommunications has announced plans to raise US$1.2bn through a rights issue to fund its network expansion according to local media reports.
There were no announcements on the…
Zain Saudi Arabia, the Saudi Arabian subsidiary of Kuwaiti incumbent Zain Telecommunications has announced plans to raise US$1.2bn through a rights issue to fund its network expansion according to local media reports.
There were no announcements on the local or group website and spokespersons from both the Saudi Arabian and Kuwaiti entities were unavailable for comment.
However Zain KSA did file a statement with the Tadawul, Saudi Arabia’s stock exchange, which local sources cited. They claimed that Saad Al Barrak, CEO of Zain KSA said: “Given the growth potential of the Saudi telecommunications market and our plans to capture a growing share of this opportunity, we intend to seek shareholder approval to raise additional capital to fund the next phase of our growth strategy,”
The papers quoted him saying: “The rationale for implementing the capital reduction is to eliminate Zain KSA’s accumulated losses and potentially increase the trading price of its shares above par.”