Etihad Atheeb board recommends capital hike via SAR 350 mln rights issue

Logo of Etihad Atheeb Telecommunication Co.

The board of directors of Etihad Atheeb Telecommunication Co. (GO) approved, in a meeting held on Dec. 19, to increase the company's capital through SAR 350 million rights issue.

The company said in a bourse statement that the main objective of the capital increase is to pay off its obligations and to develop and modernize its systems and networks.

The capital hike is pending the approval of the relevant official authorities and the company's extraordinary general assembly.

Eligibility for the rights issue will be for shareholders of record on the date of the extraordinary general assembly meeting (EGM), in which the capital increase will be approved, and the shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day following the EGM date.

AlJazira Capital has been appointed as a financial advisor to manage the company's capital increase and take all related procedures, the company said. It noted that an announcement will be made upon submitting the capital increase application file to the Capital Market Authority (CMA) for approval, in addition to any other material developments.

In July, the company's board of directors decided to authorize the executive management to study ways to restructure the company’s capital. This will include capital reduction and subsequent capital increase in accordance with the company's current financial position, Argaam earlier reported.

The company's board of directors recommended in October reducing capital by 60.62% from SAR 228.53 million to SAR 89.99 million, to restructure the company's capital to write off the accumulated losses amounting to SAR 138.53 million.

The company carried out a number of changes to its capital since debut on Tadawul in 2009, bringing its capital to SAR 228.53 million currently.

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