Saudi Telecom Company (stc) shareholders agreed to increase the company’s capital by 30 billion riyals, the largest capital increase for a listed company in the Saudi stock market history (a dollar equals 3.75 riyals).
stc, which is controlled by the Saudi sovereign fund (PIF), intends to raise capital to support the company’s plan to expand its activities and prepare for the implementation of acquisition deals in both domestic and foreign markets.
The new increase will raise the company‘s capital from 20 to 50 billion riyals, with a total value of 30 billion riyals distributed to shareholders at a rate of 1.5 free shares for each share.
The company’s share price increased by more than 2 percent during today’s trading on the Saudi stock exchange (Tadawul), reaching 42.45 riyals.
The company invested approximately 5 billion riyals in the first half of 2022 through strategic partnerships, the establishment of specialized technology companies, and acquisitions, according to Alyan Al-Wateed, CEO of stc.
