Saudi telecom giant stc shares up 6.6% as it proposes capital hike to $13bn

Also known as stc, the telecom giant’s capital plan entails increasing capital from SR20 billion ($5.33 billion) to SR50 billion. (Shutterstock)
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Updated 12 June 2022
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Saudi telecom giant stc shares up 6.6% as it proposes capital hike to $13bn

RIYADH: Saudi Telecom Co.’s shares soared 6.6 percent on Sunday after the board proposed to increase the company’s capital by 150 percent through the issuance of bonus shares.

Also known as stc, the telecom giant’s capital plan entails increasing capital from SR20 billion ($5.33 billion) to SR50 billion, according to a bourse filing.

In response to the announcement, the stock price rose to close at SR107 per share, amid trading of almost 19 million shares.


We need to understand that stc is not like any other telecom company

Mohammed Al-Suwayed, CEO of Razeen Capital

Shareholders are set to receive 1.5 shares for every share owned by capitalizing an amount of SR30 billion from retained earnings.

 “The increase in stc’s capital will support achieving its growth and expansion strategy along with maximizing its shareholders’ return,” the company said.

The proposal is subject to shareholders’ approval in the next extraordinary general assembly meeting.

“We need to understand that stc is not like any other telecom company.

“it's becoming a huge conglomerate that owns an unrelated diversified portfolio of businesses as a reflection of its strategic role in vision 2030's digital initiatives, so increasing capital was expected all along,” Mohammed Al-Suwayed, CEO of Razeen Capital, told Arab News.

Nonetheless, in the short term, he said this move might put some pressure on the stock price if profits showed weak performance by the end of the year.

 


Saudi industrial output rises 8.9% in December: GASTAT 

Updated 16 sec ago
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Saudi industrial output rises 8.9% in December: GASTAT 

RIYADH: Saudi Arabia’s industrial production rose 8.9 percent in December from a year earlier, driven by stronger mining and manufacturing activity, signaling continued momentum in the Kingdom’s non-oil and energy sectors. 

The Industrial Production Index reached 113.6 in December, up from 104.3 a year earlier, the General Authority for Statistics said.  

The latest IPI figures underscore continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda. 

In its latest report, GASTAT stated: “Preliminary results indicate an increase of 8.9 percent in the IPOI in December 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”  

Mining and quarrying activity — the largest component of the index — increased 13.2 percent year on year after Saudi Arabia raised oil production to 10.1 million barrels per day from 8.9 million bpd a year earlier. Manufacturing expanded 3.2 percent, supported by a 13.4 percent rise in chemicals output and a 7.3 percent increase in food production. 

The sub-index of electricity, gas, steam and air-conditioning supply activity recorded an annual decrease of 2.5 percent. 

The sub-index of water supply, sewerage and waste management and remediation activities increased 9.4 percent. 

Compared to November, Saudi Arabia’s IPI recorded a marginal decline of 0.1 percent. 

On a monthly basis, the sub-index of mining and quarrying activity increased 0.3 percent. 

Manufacturing activities also rose 0.3 percent in December compared to the previous month, driven by a 2.8 percent increase in the manufacture of chemicals and chemical products. 

Compared to November, the manufacture of food products increased 9.6 percent in December. 

Overall, the index of oil activities advanced 10.1 percent year on year in December, while non-oil activities increased 5.8 percent. 

Compared to November, oil activities decreased 0.3 percent, while non-oil activities increased 0.4 percent. 

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities and waste management sectors.