Zain Saudi Arabia is planning to reduce its capital from SAR5.8 billion (USD1.5 billion) to SAR3.6 billion, representing a capital decrease of around 38%. The purpose of the capital reduction is to write off accumulated losses of SAR2.2 billion. Under the proposal, the operator will cancel 222.1 million shares, with the number of shares on issue to be reduced from 583.7 million to 361.6 million. Following the capital reduction, the company plans to increase its capital from SAR3.6 billion to SAR9.6 billion by way of a rights issue with a total value of SAR6.0 billion. The proposed capital reduction and subsequent rights issue are subject to approvals from the relevant authorities, including the Capital Market Authority (CMA). The company anticipates that the capital restructuring will improve its financial performance, profitability and leverage ratios.