Saudi Arabia's stc’s board of directors announced on Saturday its recommendation to the general assembly to increase the company’s capital by 150% through granting bonus shares.
It will be capitalizing SAR 30 billion from retained earnings, bringing stc’s capital from SAR 20 billion (2 billion shares) to SAR 50 billion (5 billion shares), where 1.5 shares will be granted for every share held by shareholders at the time of maturity, reported the Saudi Press Agency.
stc aims to support the company 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 telecommunications and information technology sectors in the Kingdom and the region.
The capital increase is in line with the company’s vision to become the leading company in the field of communications and information technology and to lead the digital transformation locally and regionally by providing innovative digital services, products and solutions.
The increase is consistent with the Kingdom’s Vision 2030 to spur the private sector contribution in the gross domestic product (GDP) and the diversification of the Saudi economy.
Prince Mohammad bin Khalid Al-Abdullah Al-Faisal, Chairman of the Board of Directors, stated: "The capital increase represents an important milestone for stc being one of the biggest listed companies in the Saudi market.
"This capital increase is the largest in the history of the Saudi market and it will undoubtedly lead to enhancing the liquidity in the company’s shares and make them more accessible to wider group of investors."
stc is marching with tangible and clear steps towards achieving its strategy and vision of becoming the leading company in the field of digital and communications domain to enable the society and the economy to prosper in the Kingdom of Saudi Arabia and beyond.
The company's "dare" strategy is based on four main pillars: expanding in scale and scope, enriching the customer experience, enabling digital transformation, and accelerating its assets monetization.
Since the launch of its strategy, stc group has worked on many initiatives and projects that had a robust impact on increasing and diversifying the group's revenues through expansion of its core business in the Kingdom and the region, in addition to the investment made in new promising industries. These initiatives and projects have positively contributed towards sustainable and profitable growth of the company.
The capital increase supports the implementation of stc's ambitious growth strategy through a series of innovative initiatives and projects, which the group began this year by launching multiple investments and partnerships in new and promising sectors.
