The board of Etihad Atheeb Telecommunication Company (GO) has recommended a 278% capital increase to SAR 339.99 million from SAR 89.99 million.

GO will raise its capital through a rights issue worth SAR 250 million by offering 2.78 new shares for every one owned share, according to a bourse disclosure.

Subject to regulatory approvals, the new capital will be distributed over 33.99 million shares, instead of 8.99 million shares prior to the hike.

The Saudi listed firm will use the capital raise to pay obligations and enhance its business systems and networks. GO noted that it will disclose any further developments regarding the transaction in due time.

In the first nine months (9M) of fiscal year 2021/2022, the telecom company registered net losses after Zakat and tax worth SAR 29.16 million, compared to net profits of SAR 102.55 million in 9M-20/21.