Saudi Arabia’s Capital Markets Authority (CMA) has referred suspected persons to the Bureau of Investigation & Public Prosecution in the case of Mobily, which trades on the Saudi Stock Exchange (Tadawul) as Etihad Etisalat.

The move follows an investigation into whether certain individuals broke insider trading rules in late 2014. Investigations are ongoing.

Mobily’s share price has fallen 56 per cent since the start of November 2014, from SR80 to SR35 on 14 May 2015.

Mobily was forced to amend its financial results for 2013 and 2014 on 3 November 2014. Profits were overstated by 7 per cent due to errors in the timing of revenue recognition.

The CMA announced its investigation on the same day.

Mobily again had to amend its financial results for 2014 in March 2015. The company made a net loss of SR914m in 2014 due to precautionary measures taken in the company. Interim financial results published in January had estimated a SR220m profit.

Mobily made a profit of SR5.9bn in 2013.

Mobily’s CEO Khalid Omar al-Kaf was suspended in November 2014 and discharged following the March loss announcement. A number of board members also resigned, including the chairman Abdulaziz al-Saghyir, who remained on the board.

Bloomberg reported in March 2015 that Abdulaziz Alsaghyir Commercial Investment (AACI) sold 9.49 million shares, or two thirds of its stake in Mobily, before Al-Saghyir resigned in February. Al-Saghyir is founder and chairman of AACI.

Mobily was unable to meet financing repayment obligations. It is in negotiation with lenders.

The company is also in dispute over payment with local Mobile Telecommunications Company (Zain KSA).

The UAE’s Emirates Telecommunications Corporation (Etisalat) owns a 27.5 per cent stake in Mobily. It has stated that the revisions have had no effect on its financial results.