Mobily shares plunge on resumption of trading

Etihad Etisalat Co. (Mobily) shares fell ten percent on Monday as the stock resumed trading on Saudi Tadawul after the company restated financial earnings last week.

Saudi Arabia’s second-largest mobile operator trimmed losses towards mid-session, with trading down about 5.6 percent to SAR 31.90.

Mobily shares last traded on June 8 when Saudi Arabia’s Capital Market Authority (CMA) halted trading until the company could disclose financial impact from a regulatory report examining its accounting irregularities.  

The stock is top-traded on Tadawul, with transactions amounting to over SAR 3.5 million. Overall, the Tadawul All Share Index is down 0.5 percent to 8,762 points.

The telco last week restated its Q1-2015 net loss to SAR 45 million from the previously announced net loss of AR 199 million. Losses recorded for the 2014 fiscal year widened to SAR 1.58 billion from SAR 913 million, while the telco’s net profit for fiscal year 2013 was also restated to SAR 4.69 billion from SAR 5.93 billion.

Last month saw a slew of new appointments at the company. Ahmad Farroukh, a former chief executive officer of MTN Group Ltd.’s South Africa unit was named the new CEO. Mobily in February had sacked managing director and chief executive Khaled Al Kaf from both positions.

Kais Ben Hamida, who previously worked for Orange SA, Egyptian Mobinil, and Societe Generale SA, was named as Mobily’s chief financial officer.