Zain Saudi starts rights trading, subscription today
ShareCopy to clipboard
Mobile Telecommunication Company Saudi Arabia’s (Zain Saudi) subscription to new shares and rights trading begins today, Oct.19, 2020.
Rights trading will end on Oct. 26, and subscription to the new shares will close on Oct. 29.
The telco plans to issue 450 million shares at SAR 10 each to increase its capital from SAR 4.48 billion to SAR 8.98 billion.
Shareholders of record on the record date will be entitled to receive 1.003 rights for each share held.
According the rights issue prospectus, the rights issue shares will be classified into two categories:
The first : 283.3 million shares at a total value of SAR 2.83 billion, representing 62.96% of the total rights issue shares, to be offered to shareholders of record (except for Kuwait-based Zain Group) who will subscribe to them in cash.
The second: 166.7 million shares at a total value of SAR 1.67 billion, representing 37.04% of the total rights to be offered to Kuwait’s Zain Group through capitalizing a portion of the amount owed by the Saudi operator to Kuwait’s Zain.
The following table illustrates the capital hike details:
Capital Hike Details
SAR 4.48 bln
Number of shares
448.7 mln shares
Capital after increase
SAR 8.98 bln
Number of shares after increase
898.7 mln shares
Rights Issue Details
Number of right shares
450 million shares
Offering price per share
Size of issue
SAR 4.50 bln
Oct. 14, 2020 (Shareholders of record at the Securities Depository Center Co. (Edaa) on Oct. 18, 2020)
1.003 rights for every 1 share held
Date of rights trading and subscription
Oct. 19, 2020
End date of rights trading
Oct. 26, 2020
End date of subscription
Oct. 29, 2020
Purpose of capital hike
Partial repayment of SAR 1.67 bln worth of dues owed to Kuwait’s Zain Group
Partial repayment of Murabaha facilities with SAR 2.77 bln
Underwriting expenses and fees of SAR 65 mln
Financial advisor and underwriter
Saudi Fransi Capital, ANB Invest, Al Rajhi Capital
Saudi Fransi Capital
Saudi Fransi Capital, ANB Invest, Al Rajhi Capital, Aljazira Capital, Riyad Capital, Alinma Investment
Rights holders are entitled to subscribe to the new shares partially or fully pro rata. They will also subscribe to the new shares according to the prospectus.
In case of under subscription, the remaining and fractional shares (if any) will be offered to institutional investors.
The financial advisors, lead managers and underwriters, namely Saudi Fransi Capital, Arab National Investment Bank, Al Rajhi Capital, Aljazira Capital, Alinma Investment and Riyad Capital, will also subscribe to these rights.
Investors not willing to subscribe to the offering should note the importance of selling the rights they hold during the specified trading period to avoid the resulting decline in the value of their investment portfolios as a result of not benefiting from their rights, whether by way of sale or subscription, the statement added.