Mobily planning rights issue

20 May 2005

The Saudi mobile firm Etihad Etisalat, which is set to launch its first GSM services next month under the name Mobily, is planning a SAR2 billion (USD530 million) rights issue. The report comes from Dow Jones, which quotes unnamed banking sources said to be familiar with the matter. The operator, which is backed by Etisalat, the state-run telco of the United Arab Emirates, held an initial public offering last year in which a 20% stake was sold. This left the company’s Saudi-based founding investors with a 45% interest while Etisalat has the remaining 35%. The IPO was 51-times over subscribed, with four million Saudis – a quarter of the population – buying shares in the new operator. Mobily is hoping to attract one million customers in its first year of operations; the Saudi mobile market is currently monopolised by state-run entity STC which had around nine million cellular subscribers at the end of 2004.

Saudi Arabia, Mobily (Etihad Etisalat)