Etihad Atheeb Telecommunication Company (GO) Secures Regulatory Approval for SAR 250 Million Capital Hike

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The Capital Market Authority (CMA) of Saudi Arabia has granted approval to Etihad Atheeb Telecommunication Company (GO) for a significant capital increase of SAR 250 million through a rights issue. The approval was received on 8 January 2024, as revealed in a recent disclosure to the Saudi Exchange (Tadawul). With the green light from regulatory authorities, GO is now poised to strengthen its financial position and fuel its expansion plans.

Capital Increase Details:
As of the latest available data, GO’s authorized and paid-up capital stands at SAR 89.99 million. Following the approved capital hike, the company’s capital will witness a substantial boost, reaching SAR 339.99 million. This capital injection is expected to enhance GO’s ability to invest in strategic initiatives, technological advancements, and overall business growth.

Determination of Offering Price:
With the regulatory hurdle cleared, GO is set to determine the offering price and specify the number of shares available for subscription. This crucial decision-making process is scheduled to take place after the market closes on the same day as the extraordinary general meeting (EGM). The outcome of these deliberations will significantly impact investor interest and the overall success of the rights issue.

Financial Performance:
GO’s robust financial performance in the first nine months (9M) of 2023 underscores the company’s growth trajectory. During this period, the company reported an impressive surge in net profits, recording a staggering 1,922.13% increase. The net profits soared to SAR 100.50 million compared to SAR 4.97 million in the corresponding year-ago period. This exceptional growth is indicative of GO’s effective operational strategies and its ability to navigate the dynamic telecommunications market.

Strategic Implications:
The capital increase comes at a strategic juncture for GO, aligning with its plans for expansion and market dominance. The infusion of SAR 250 million will provide the company with the necessary financial firepower to invest in advanced technologies, network infrastructure, and innovative services. This move is expected to bolster GO’s competitive position in the telecommunications sector and enhance its ability to meet the evolving needs of customers in an increasingly digital landscape.

The regulatory approval for Etihad Atheeb Telecommunication Company’s SAR 250 million capital hike marks a significant milestone in the company’s growth journey. As GO moves forward with determining the offering price and subscription details, investors will closely watch the developments, anticipating the impact on the company’s market standing. The stellar financial performance in 9M 2023 adds confidence to GO’s prospects, positioning it as a key player in the dynamic Saudi telecommunications industry.

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