Saudi Arabian Ministry of Telecommunications and Information Technology has cancelled Saudi Integrated Telecoms Company’s (SITC’s) operating licence and the telco is to be dissolved, according to a statement published on the Gulf Kingdom’s stock exchange website. Under the Royal Decree, the financially troubled telecoms company will be liquidated within the next six months, under the supervision of a committee formed by representatives of the local Ministry of Commerce and Industry, the Capital Market Authority (CMA), and the Communications and Information Technology Commission (CITC).
In 2011, SITC, which had financial backing from Hong Kong’s PCCW, undertook a SAR300 million (USD80 million) initial public offering (IPO), which was reportedly more than twice oversubscribed. In September 2012 though, the company was fined SAR200,000 by the CMA, for allegedly violating markets and listing rules. Subsequently, in February this year trading in SITC shares was suspended, after the CITC requested the termination of the company’s licence.
On 5 May 2013, a separate company – Integrated Telecom Company (ITC), part of the Mawarid Group – published a disclaimer on its website, distancing itself from SITC, saying: ‘ITC is a separate legal entity which operates completely and independently from SITC with absolutely no impact on ITC’s business continuity to provide customer support and services over its national and international telecom infrastructure’.