Saudi Telecom board proposes $8 billion capital increase -Breaking

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Saudi Telecom board proposes $8 billion capital increase© Reuters. FILEPHOTO: This is a man passing the Saudi Telecom STC offices in Riyadh. Saudi Arabia, February 6, 2018. REUTERS/Faisal Al Nasser

DUBAI, (Reuters) – Saudi Telecom stated on Sunday that the board of directors had suggested increasing its capital by $30 billion riyal ($8 Billion) to help finance expansion and growth in Saudi Arabia and other parts of the region.

Capital increase will involve 30 billion shares being issued, which would represent a capital rise of 150%. Shareholders are offered 1.5 shares per share.

An announcement regarding the news was published by Saudi Stock Market.

Through its sovereign wealth fund the Public Investment Fund, Saudi Arabia owns 64% the largest telecom companies.

Saudi Telecom also stated that its board recommended reducing its dividend policy, which was set at 1 riyal $0.26 per share (quarterly) to 0.40riyal ($0.10).

According to the statement, the board suggested that the dividend policy be changed for the next three years, as it had been in place since the fourth quarter of last year. This was in response the share capital rise.

It stated that the board will continue to look into additional dividend payments.

($1 = 3.7513 riyals)