Zain to raise US$4.5 billion

Zain to raise funds from share offering to finance regional expansion.

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By  Roger Field Published  August 17, 2008

Kuwaiti mobile company Zain has announced plans to issue more shares in order to raise funds of US$4.5 billion.

The shares, which will be available through the National Bank of Kuwait, from August 17 to September 18, will be used by the operator to finance future expansion plans and meet current financial commitments.

Zain CEO Dr Saad Al-Barrak described company shareholders as “the cornerstone on which Zain has based all its decisions”.

He said: “This capital increase will be instrumental in supporting our target of Zain becoming one of the top-ten global mobile telecom operators in the world by 2011”.

Zain’s current share price has been adjusted since March to reflect the impact of the capital increase subscription price of 850 fils (approximately US$3.20) per share.

Zain has 50 million customers in 22 countries, netting the mobile operator revenues of US$3.49 billion and profits of USD$552 million during the first half of 2008.

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