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Tue 16 Sep 2008 11:46 AM

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Saudi Mobily gets approval for capital hike

Approval given for Etisalat affiliate to raise $533.3m in 200m share rights issue

Etihad Etislat (Mobily) said on Monday the Saudi Capital Market Authority had approval plans to raise its capital by 2 billion Saudi riyal ($533.3 million) in a rights issue.

Saudi Arabia's second-largest mobile phone company by market value, Mobily will offer stock holders 200 million shares with a nominal value of 10 riyals, it said in a statement on the bourse website.

The offer will apply to existing shareholders at the close of trading on the day of an extraordinary general meeting which is still to be announced, the statement said, adding 60 percent of the firm is owned by the shareholding public.

The firm, an affiliate of Emirates Telecommunications Corp , reported a 47.4% rise in second-quarter net profit to 448 million riyals ($119.5 million), almost double the rise in its earnings from operations.

Mobily competes with Saudi Telecom Co, the second-largest Arab telecom firm by market value, and newcomer Saud Zain for mobile phone users in the kingdom, the world's largest oil exporter and home to 25 million people.

Mobily said in July it had a 39% market share with 11.1 million subscribers. (Reuters)

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