JEDDAH –Zain Saudi, the Kingdom's third telecom operator, said it will start a rights issue Tuesday which will close eight days later, the firm said in a bourse statement Saturday. “The issuing price will be SR10 without a premium, keeping in mind that the shares offered are 600 million shares," the statement said. Last month the issue prospectus stated that Saudi Arabia's Al-Rajhi Bank and Banque Saudi Fransi are among five banks underwriting a SR6 billion ($1.6 billion) rights issue from the indebted telecom operator. Zain KSA) reduced its paid-up capital to SR4.80 billion from SR14 billion. The decision was reached at an extraordinary general assembly meeting (EGM) held in Riyadh on July 4, in which shareholders voted in favor of the Company's plans to restructure its capital. The subsequent capital increase to SR10.801 billion, which was also approved at the EGM, is by way of a rights issue. Prince Dr. Hussam bin Saud bin Abdul Aziz, Chairman of Zain KSA, said "we have received a clear mandate for the capital restructuring." – SGSaudi Fransi Capital is the lead manager of the rights issue and Saudi Fransi Capital and Al Rajhi Capital are the co-financial advisers. The receiving banks' list include 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. – SG
