Zain Saudi Arabia, a subsidiary of Kuwait-based telco Zain Group, has filed for regulatory approvals of its planned capital decrease and rights issue, the company said in a bourse statement. The filings were submitted to the Capital Market Authority (CMA) and Saudi Stock Exchange (Tadawul). The company’s board had recommended a 38% capital cut to SAR3.6 billion (USD959 million) to write off accumulated losses of SAR2.2 billion, after which it will solicit new capital through a rights issue. Zain appointed Saudi Fransi Capital, Al Rajhi Capital and the Arab National Investment as financial advisors.
Zain Saudi Arabia reported a net loss of SAR77 million in the three months to end-March 2018, down from a net profit of SAR45 million in 1Q17. Zain Saudi generated revenues of SAR1.69 billion during the period under review, a figure which represented a 12% annual decline on the SAR1.92 billion reported for 1Q17. EBITDA for the three-month period also decreased, by 14% year-on-year, to SAR571 million. Zain reported a subscriber base of 8.4 million at end-March 2018, down by 1.7 million y-o-y, highlighting that the development was ‘in line with country wide decrease in subscriber numbers.’