GO issues prospectus for SAR 250 mln rights issue

Capital Hike Details

Current Capital

SAR 90 mln

Number of Shares

9 mln shares

Method

Issuance of priority rights shares worth SAR 250 million.

Percentage Increase

278% (through issuance of 2.78 shares per each share)

New Capital

SAR 340 mln

Number of Shares

34 mln shares

Rights Issue Details

Offered Shares

25 mln shares

Offer Price

SAR 10

Size of Issue

SAR 250 mln

Eligibility Ratio

Each listed shareholder shall have the right to subscribe to 2.78 shares per each owned share.

Record Date

The increase will be limited to the shareholders who are registered in the Securities Depository Center (Edaa) by the close of trading on the second trading day after the extraordinary general assembly meeting (EGM).

Rights issue proceeds

Paying part of the outstanding balances and dues to one of the company’s main suppliers

SAR 30 mln

Paying a balance owed to the Communications, Space and Technology Commission

SAR 30 mln

Paying part of the total value of leasing telecom towers from a main supplier

SAR 50 mln

Payment of dues for leasing the company’s tower sites

SAR 20 mln

Payment of outstanding balances and dues to other operators

SAR 5 mln

Payment of zakat entitlements

SAR 2 mln

Developing and Replacing IT Systems

SAR 5 mln

Developing a Business Intelligence and Reporting System

SAR 1 mln

Purchase of equipment and devices

SAR 2 mln

Infrastructure development by developing networking (IP-MPLS)

SAR 40 mln

Developing microwave technology to support the business sector

SAR 5 mln

Developing and building cloud data centers

SAR 5 mln

Voice over IP development

SAR 1 mln

Upgrading core network equipment 

SAR 10 mln

Cyber security implementation

SAR 4 mln

Network capacity development

SAR 35 mln

Offering costs

SAR 5 mln