Subscriptions for Mobile Telecommunications (Zain) $4.5 billion capital increase will open on August 17, the company said.

Application forms and prospectus of the issue will be available at all National Bank of Kuwait’s (NBK) branches starting on the day, it said.

Every Zain shareholder on record as on 10 March 2008, the date the company held its ordinary and extraordinary General Assembly Meeting, will be eligible to subscribe to shares equal to 75 per cent of the total number of shares held on this date.

The subscription to the capital increase will close on September 18, 2008. The subscription price will be 850 fils (approximately $3.20) per share i.e. a nominal value of 100 fils per share plus an issuance premium of 750 fils, said the statement.

The anticipated 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. Zain has set a target of being a top-10 global mobile operator by the year 2011.

The company recently released its half-year 2008 results indicating revenues of $3.488 billion, an increase of 26 per cent compared to H12007. The company’s consolidated EBITDA increased by 20 per cent for the same period to reach $1.305 billion. Zain’s consolidated net profits reached $ 552 million, an increase of 7 per cent on H12007 profits. – TradeArabia News Service