Zain rights issue to run between August 17 and September 18

Zain today announced details of its US$4.5 billion rights issue, clarifying that application forms and the prospectus would be available at all National Bank of Kuwait (NBK) branches starting August 17.

Zain is understood to be considering further investment opportunities in markets such as Rwanda in Africa

Every Zain shareholder of record on March 10, 2008, the date the company held its ordinary and extraordinary general assembly meeting, will be eligible to subscribe to a number of capital increase shares equal to 75 per cent of the total number of shares they held on this date.

The subscription to the capital increase is set to close on September 18, 2008, and the subscription price will be 850 fils (approximately US$3.20) per share. That is a nominal value of 100 fils per share plus an issuance premium of 750 fils.

The anticipated capital increase is expected to result in proceeds of about US$4.5 billion, which will allow Zain to finance its future expansion plans as well as meet its financial commitments. Zain has set a target of being a top-ten global mobile operator by 2011.

Earlier this month, Zain CEO Saad Al Barrak stated that the operator plans to seek a listing on the London Stock Exchange in the first quarter of next year.