Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Saudi Telecom shares rise on $8 billion capital increase proposal

Stock Markets Jun 12, 2022 12:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man passes the Saudi Telecom STC office in Riyadh, Saudi Arabia February 6, 2018. REUTERS/Faisal Al Nasser 2/2
 
7010
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Alexander Cornwell

DUBAI (Reuters) - Saudi Telecom said on Sunday its board had proposed increasing the company's share capital by 30 billion riyals ($8 billion), or 150%, driving the share price nearly 10% higher.

The Riyadh-listed company had earlier announced the proposed capital increase would involve issuing 30 billion new shares, with shareholders offered 1.5 new shares for each share owned.

That sent shares up as much as 9.8% to 110.2 riyals in early trade before retreating slightly to 107 riyals, up 6.6% from the start of trade on Sunday, according to Refinitiv data.

"This increase will undoubtedly lead to enhancing the liquidity in the company's shares and make them more accessible to wider group of investors," chairman of the board of directors Prince Mohammad bin Khalid Al-Abdullah Al-Faisal said.

In a statement, he said the company's so-called "dare" strategy is based on four main pillars: expanding in scale and scope, enriching the customer experience, enabling digital transformation, and accelerating monetisation of its assets.

Last year STC listed its unit Arabian Internet and Communications Services Co, raising $966.35 million.

Saudi Telecom said in statement the capital increase through retained earnings would support growth and expansion plans.

The company, in which Saudi Arabia's government holds a 64% stake through sovereign wealth fund the Public Investment Fund, also said the board had proposed trimming the dividend policy.

Under the proposal, the three-year dividend policy in place since the fourth quarter of 2021 would be cut from a 1 riyal ($0.26) payment per share per quarter to 0.40 riyal ($0.10).

That recommendation was in response to the proposed share capital increase, though the board would continue to consider additional dividend payments, the company said.

($1 = 3.7513 riyals)

Saudi Telecom shares rise on $8 billion capital increase proposal
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Robert Copeland
Robert Copeland Jun 13, 2022 8:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not much of a surprise in regards to this or any of the rest of there infrastructure.
FMGK Blue
FMGK Blue Jun 12, 2022 3:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yoouuurss!!!!!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email