Riyadh – Mubasher: Zain Group's Vice-Chairman and CEO, Bader Nasser Al-Kharafi, said the successful competition of Zain KSA's capital restructuring enhances its capabilities to expand its strategic investments in the Saudi telecommunications sector, growing its profitability and paving the way for dividends.
He added that the massive demand in the remaining priority rights subscription captures shareholders and investors' confidence in the unit's operational strategy and future growth plans, underpinned by the company’s return to profitability over the last three years, according to a press release.
The steps came as part of Zain KSA's plan to restructure its capital, offsetting most of the unit’s accumulated losses, paying part of the Murabaha financing, and capitalising part of other dues.
Zain KSA's management aims to further grow its operations in the fields of digital innovation, cloud computing, the Internet of Things (IoT), and artificial intelligence (AI), eyeing to become the preferred digital service provider for individuals and businesses.
Moreover, the operator is set to continue expanding 5G into new cities, as well as increasing coverage in current locations whilst also raising the quality of services provided.
Most of Zain KSA's accumulated losses were amortised to SAR 34 million. Since the fourth quarter (Q4) of the year when the capital restructuring took place, the company's share price has increased to reach its highest level this year with a value of over SAR 13 per share, compared to just SAR 6 last year.
In September, Zain KSA signed a deal to reschedule the joint Murabaha financing with a consortium of several banks, with an estimated value of SAR 3.85 billion on preferential terms. This agreement extends for a period of five years to 2025.
During the third quarter (Q3), the telecom operator gained SAR 60 million in net profits, compared with SAR 121 million in the same quarter in 2019, posting a 50.4% contraction.