Etihad Etisalat (Mobily), a leading telecom operator in Saudi Arabia, said it has approved a board recommendation for raising the capital by 10 per cent from SR7 billion to SR7.7 billion ($1.86 billion to $2.05 billion)  through a bonus share issue.

Etihad Etisalat (Mobily), a leading telecom operator in Saudi Arabia, said it has approved a board recommendation for a 10 per cent increase in capital through a bonus share issue.

The firm said in a statement posted on the bourse's website that a general assembly meeting approved a recommendation of the board to increase the company's capital to SR7.7 billion ($2.05 billion) from SR7 billion through a bonus share for every 10 owned by registered shareholders.

"The total number of shares will increase by 70,000,000 from 700,000,000 to 770,000,000. The aim of a bonus share issue is to enhance shareholder returns," it said.-Reuters