Kuwaiti telecoms giant raises 4.49 bln dollars in funding
Sat Sep 20, 4:25 PM
KUWAIT CITY (AFP) - Kuwait's telecom giant Zain said on Saturday it has raised 1.2 billion dinars (4.49 billion dollars) of new capital in a rights issue, to meet huge expansion plans.
The offering, the largest in the oil-rich emirate's history, was 99 percent subscribed, Zain said. The fund-raising move, which was open only to existing shareholders, was successful despite unfavourable financial conditions globally and locally, the company added in a statement.
"The proceeds of this capital increase will be used to finance future strategic expansion plans and meet financial commitments," chief executive officer Saad Al Barrak said.
Zain is now present in 22 countries in the Middle East and Africa since expanding operations last month to economic powerhouse Saudi Arabia. Up to the end of June, the group had 51 million subscribers.
In the past few years, it has spent billions of dollars in acquisitions and expansions.
"We expect these investments to bring about substantial increases in the group's future revenues and net profits," Barrak said.
Zain aims to become one of the top 10 global telecoms companies by 2011.
Its market capitalisation has reached 27.5 billion dollars as of Friday.
Zain, in which the state owns a 24.6 percent stake, was established in 1983.
It is one of two mobile operators in Kuwait, along with the National Telecommunications Co (Wataniya). A third mobile company, to be run by Saudi Telecom, is expected to start operations by the end of this year.
