Saudi watchdog lifts one-day suspension of Mobily shares - Mobile World Live

Saudi watchdog lifts one-day suspension of Mobily shares

12 OCT 2015

Saudi Arabia’s Capital Market Authority (CMA) suspended trading of Mobily’s shares on 11 October, and then lifted the ban a day later.

The suspension was regarding “a clarification from Mobily about the preliminary decisions issued by the Committee for the Resolution of Securities Disputes (CRSD) on the lawsuits filed by some investors regarding compensation for the losses they suffered as a result of the financial statements released by the company,” CMA said in a statement.

The CMA then said it had lifted the suspension when “Mobily announced that it received the first decisions issued by the CRSD regarding those lawsuits”.

Mobily, part-owned by Etisalat, said the CMA had rejected demands by some shareholders for compensation over a sharp drop in the firm’s stock price.

In June, the CMA suspended Mobily shares following an investigation over accountancy discrepancies affecting its 2013 and 2014 financial results, which eventually led to the departure of long-term CEO Khalid al Kaf.

In August, shares resumed trading on Riyadh’s bourse after the company reissued its financial results for 2014 and Q1 2015.

Its restated 2014 loss grew to SAR 1.58 billion ($421.3 million) from SAR 913 million, and the company saw its profits slashed over the entire period by a total of almost SAR 1.76 billion.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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