We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Mon 19 Dec 2011 06:27 PM

Font Size

- Aa +

Saudi telco gets nod for $310m rights issue

Etihad Atheeb Telecom receives regulatory approval to launch capital increase

Saudi telco gets nod for $310m rights issue
Etihad Atheeb Telecom has won approval to launch a $310m capital increase.

Saudi Arabia's Etihad Atheeb Telecom has received regulatory approval to launch a SR1.175bn ($310m) capital increase, paving the way for the loss-making firm to resume trading on the kingdom's bourse.

Atheeb, 15-percent owned by Bahrain Telecommunications Co, will issue the 117.5 million shares at a nominal value of 10 riyals per share to raise its capital to SR1.575bn, the operator said in an emailed statement to Reuters.

Atheeb, which operates under the brand name GO and was awarded a fixed line licence in 2009, will hold an extraordinary shareholder meeting to decide at what price to sell the new shares, with the rights issue restricted to existing shareholders.

The firm's shares were suspended in May after its accumulated losses reached 95 percent. Saudi market rules call for a suspension if losses exceed 75 percent.

Atheeb then cut its capital by 60 percent to SR400m to cover some of these losses, with the rights issue to follow ahead of its resuming trading.

"(This will) be discussed with regulatory bodies and we are sure the suspension will be lifted in the appropriate time," Atheeb said in the statement.

No date was announced for the shareholder meeting.

Arabian Business: why we're going behind a paywall

For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.