The Extraordinary General Assembly of the Saudi Telecom Company (STC) approved the recommendation of the Board of Directors to increase the company's capital by 30 billion riyals by granting 1.5 shares for every 1 share owned by the shareholder at the time of maturity.
According to Al-Eqtisadiah newspaper, the capital will rise from 20 billion riyals to 50 billion, an increase of 150%, which will raise the number of shares from 2 billion shares to 5 billion shares.
According to the company's statement in Tadawul, this increase aims to support STC in achieving its strategy of expansion and growth, and maximizing the total return for shareholders, by increasing and diversifying investments and seizing the expected growth opportunities in the communications and information technology sectors in Saudi Arabia and the region.
And she indicated that in the event of fractional shares, the fractions will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed to the shareholders entitled to the grant, each according to his share, within a period not exceeding 30 days from the date of determining the new shares due to each shareholder.
The eligibility will be for the shareholders owning shares at the end of trading on the day of the extraordinary general assembly, and those who are registered in a deposit at the end of the second trading day following the date of the extraordinary general assembly.
For its part, Tadawul announced that the fluctuation rate for STC stock will be calculated based on the price of 41.60 riyals for today, Wednesday, August 31, and the cancellation of the existing orders, and Edaa will add the bonus shares in the shareholders’ portfolios before the start of trading on Sunday, September 4th.
