stc GA to vote on capital increase by SR30 bln through bonus ‎shares

Today, Tuesday evening, August 30, 2022, the Extraordinary General Assembly of stc will be held to vote on increasing the company’s capital by 30 billion riyals through bonus shares noting that E-voting began on August 26.

In order to vote on the Board of Directors’ recommendation regarding increasing the capital of Saudi Telecom Company stc by granting free shares to the company’s shareholders as follows:

1. The total amount of the increase is 30,000 million riyals.
2. The capital before the increase is 20,000 million riyals, and the capital will become 50,000 million riyals after the increase, with an increase of (150%).
3. The number of shares before the increase is 2,000 million shares, and the number of shares after the increase will be 5,000 million shares.

According to the company, this capital 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 telecommunications and information technology sectors in the Kingdom of Saudi Arabia and the region. ‎

The increase will take place by capitalizing an amount of 30,000 million riyals from the retained earnings, by granting (1.5) shares for every (1) share owned by the shareholder at the time of maturity.

On the other hand, the total other expenses increased by 365 million riyals, mainly due to recording the net share in the results and impairment of investments in associates and joint ventures by (283) million riyals, compared to 39 million riyals, mainly resulting from recording a provision for impairment. The value for investment in Binaryang GSM Holding Group amounted to (298) million riyals compared to nothing in the same quarter of the previous year, as a result of the change in global economic factors, including the increase in the interest rate and the change in the share price of one of its main investments in The Malaysian market led to a reassessment of this investment based on these factors, despite the revenue growth of Binaryang GSM Holding Group. And an increase in zakat and income tax expenses by 62 million riyals.‎