CMA approves GO's SAR 250M rights issue to raise capital

Logo of Etihad Atheeb Telecommunication Co. (GO) 

The Capital Market Authority (CMA) approved the application received from Etihad Atheeb Telecommunication Co. (GO) to increase its capital through a SAR 250 million rights offering.

Eligible shareholders are registered with the Security Depository Center (Edaa) as of the close of the second trading day after the extraordinary general meeting (EGM), which will be determined by the board of directors at a later date.

The offering price and number of shares offered will be set by the company after the close of trading on the EGM date. The rights offering prospectus will be issued later.

In March, Etihad Atheeb’s board of directors proposed increasing capital by SAR 250 million through a rights issue to pay debts and upgrade systems and networks, according to data compiled by Argaam.

An investment decision based on the company’s board recommendation to increase its capital or the CMA’s approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk.

The CMA’s approval of the prospectus should never be considered as a recommendation to participate in the offering or invest in the company's shares. The CMA’s approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.