Zain Saudi, a Saudi Arabian telecommunication operator, has proposed a capital reduction to shareholders to eliminate all accumulated losses up to September 30, the company said in a statement on the kingdom's bourse.

The move would cut its capital base by 45.9 per cent. After the move, one share would equal 2.18 shares now, the statement said.

The company, 37-per cent owned by Kuwait's Zain, has yet to make a quarterly profit since launching services in 2008 and has struggled to compete against better-resourced rivals Saudi Telecom Co (STC) and Etihad Etisalat (Mobily).

Zain Saudi made a net loss of SR316 million ($84.2 million) in the three months to September 30. - Reuters