Zain Saudi $1.69 billion rights issue over-subscribed

Zain Saudi's $1.69 billion rights issue was over-subscribed by 105.4 percent, the issue's lead manager Saudi Fransi Capital said in an emailed statement on Saturday. The kingdom's third telecom operator started a rights issue on July 10 which closed eight days later. The issuing price was set at 10 Saudi riyals, without a premium, it said.
Prior to the rights issue, Zain Saudi also cut its capital earlier this month to 4.8 billion riyals from 14 billion riyals to alleviate accumulated losses, which topped 10 billion riyals at the end of March. "With the finalisation of the rights issue, the capital restructuring of Zain Saudi - which was set to improve the financial situation of the company - is complete," the statement said.