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Mobile Telecommunications Company, operating under the brand name 'Zain' across 22 countries in the Middle East and Africa, plans to raise $4.5 billion through a rights issue to fund its expansion plans, it was revealed.
It has made application forms and prospectus of the capital increase available at all National Bank of Kuwait's (NBK) branches this week.
Every Zain shareholder, as of March 10, will be eligible to subscribe to shares equivalent to 75 per cent of the total number of shares they held on this date.
The subscription price is 850 fils per share i.e. a nominal value of 100 fils per share plus an issuance premium of 750 fils. The issue closes on September 18, 2008.
This capital increase was approved at the company's extraordinary general assembly meeting on March 10, which ratified Zain's board of directors recommendation to increase the company's 'paid in capital' by 75 per cent.
The capital increase is expected to result in proceeds of about $4.5 billion, which will allow Zain to finance its future expansion plans as well as meet its financial commitments.
