Reuters reports that Zain Saudi will launch a rights issue today which will close eight days later, citing a statement made by the operator to the local stock exchange. ‘The issuing price will be SAR10 (USD2.666) without a premium, keeping in mind that the shares offered are 600 million shares,’ the statement said. The indebted operator hopes to use the cash proceeds to reduce the company’s current liabilities and enhance the quality and performance of its existing network. The capitalisation of a portion of the shareholder loans will further reduce the debt levels of the company.
According to TeleGeography’s GlobalComms Database, Zain Saudi is the country’s third largest mobile operator by subscribers, claiming a 12% share of the Saudi market.