Saudi Arabia’s Etihad Atheeb Telecom has received regulatory approval to launch a SR1.175bn (US$310m) capital increase which could help it resume trading on the Kingdom’s bourse, Reuters reported.
In an emailed statement to the news agency,…
Saudi Arabia’s Etihad Atheeb Telecom has received regulatory approval to launch a SR1.175bn (US$310m) capital increase which could help it resume trading on the Kingdom’s bourse, Reuters reported.
In an emailed statement to the news agency, Atheeb, in which Bahrain Telecommunications holds a 15% stake, said it will issue 117.5 million shares at a nominal value of 10 riyals each to raise its capital to SR1.575bn.
The fixed-line operator, which trades under the brand name GO, said in the statement it would hold a shareholder meeting to set a price for the new shares, with the rights issue restricted to existing shareholders. The date of the meeting is yet to be announced.
The company’s shares were suspended in May when its accumulated losses soared to 95 percent – well above the 75 percent threshold Saudi market rules stipulate.
Atheeb then cut its capital by 60% to SR400m (US$106m) to SR1.575bn (US$420m) to cover some of its losses and Reuters reported the rights issue will take place before the company resumes trading.
“(This will) be discussed with regulatory bodies and we are sure the suspension will be lifted in the appropriate time,” Reuters quoted Atheeb as stating.
Atheeb was not immediately available for comment.
