Saudi Arabian number-two telco Etihad Etisalat (Mobily) is to engage in a 10% bonus share issue, according to a statement made by the company to the kingdom’s bourse yesterday, reported Reuters.
Mobily, which is an affiliate of UAE operator Etisalat, said it would give shareholders one new share for every ten held. The issue would raise the number of shares held to 770m from 700m, provided the proposal attains regulatory approval.
Given the current nominal value of SAR10 per share, the company’s capital would increase to SAR7.7bn from SAR7bn.
Mobily said the capital increase would be financed by retained earnings and that other bonus issues could follow in coming years.
Mobily report a 23% rise in third-quarter net profit in October, which was largely attributed to an increase in revenue from its business and data units and surging smartphone penetration in the kingdom.
The company’s shares were down 0.7% on the Saudi bourse.
