Zain KSA announced plans to seek approval for reduction in equity capital, equivalent to its accumulated losses from SAR10.8bn to SAR 5.8bn, according to Al Rajhi Capital report.
If the capital reduction request approved, it will not have any impact on Zain KSA’s total market capitalization, but will increase the fair value per share by 1.85 times; Al Rajhi capital indicated.
Al Rajhi Capital also reported, in response to Mobily’s allegation of SAR 2.2bn of accounts receivable from Zain KSA, the company has stated that these claims are arbitrary and are in contradiction to regulatory resolutions issued by the Communications and Information Technology Commission (CITC).
In the light of these events, Al Rajhi Capital places the stock under review till it gets additional clarity.
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