Zain KSA’s shareholders have agreed a plan to restructure the company’s capital at an extraordinary general meeting in Riyadh.
The company is set to reduce its capital to SR4.801 billion ($1.28bn) from SR14 billion, after which it plans to raise SR6 billion through a rights issue.
HRH Prince Dr. Hussam bin Saud bin Abdul Aziz, chairman of Zain KSA, said: "We are very pleased with the outcome of the EGM. We have received a clear mandate for the capital restructuring."
Saudi Fransi Capital is the lead manager of the rights issue and Saudi Fransi Capital and Al Rajhi Capital are the co-financial advisers.
The list of receiving banks is Banque Saudi Fransi, Al Rajhi Bank, Alinma Bank, Bank AlBilad, The National Commercial Bank, Samba Financial Group, Saudi Hollandi Bank, Arab National Bank, Bank Aljazira, Riyad Bank, SABB and The Saudi Investment Bank.
Zain KSA increased its revenues to SR 1.522 billion ($406m) in Q1 2012, a rise of 3% on the same period in 2011.
Following a successful bid for the third mobile licence in March 2007, Zain KSA commenced commercial operations in Saudi Arabia in August 2008.