SITC shareholders to receive SAR1.05bn compensation
King Abdullah orders payout of SAR30 per share
Saudi Arabia's King Abdullah has issued a royal decree instructing financial and telecoms authorities to pay compensation to shareholders of Saudi Integrated Telecom Company (SITC), which lost its operating licence last year following a long regulatory battle over the company's behaviour during its IPO.
King Abdullah has directed authorities to pay out SAR30 per share to stakeholders, in a compensation package totaling SAR1.05bn ($279.98m).
In 2011, SITC, which was backed by Hong Kong's PCCW, launched a SAR300m initial public offering, which was more than twice oversubscribed. But in September 2012 the company was accused of violating markets and listing rules and was fined SAR200,000 by the kingdom's Capital Market Authority (CMA).
The following February, trading in SITC shares was suspended, after the country's telecoms regulator, the Communications and IT Commission (CITC), requested termination of the company's operating licence.
The telecoms ministry finally cancelled SITC's licence in May 2013, and under a separate royal decree the company was set to be liquidated the following month.