stc gets CMA approval to increase capital to SAR 50 bln via bonus issue

Logo of stc 

Saudi Arabia’s telecom operator stc obtained the approval of the Capital Market Authority (CMA) to increase its capital from SAR 20 billion to SAR 50 billion through issuing 1.5 bonus shares for every one share owned by shareholders registered with the Security Depository Center (Edaa) at the end of the second trading day following the record date to be set by the board of directors later.

In a bourse statement, the telco stated that the bonus share distribution will be financed by transferring SAR 30 billion from retained earnings, and thus increasing its outstanding shares from two billion to five billion.

The extraordinary general meeting (EGM) should be held within six months from the approval date, and the company will fulfill the regulatory requirements as per the applicable laws.

In June, the board of directors recommended increasing the company’s capital by 150% through a bonus share distribution, which will be financed through capitalizing SAR 30 billion from retained earnings, according to data available with Argaam.