Saudi Arabia’s King Abdullah has reportedly issued a Royal Decree instructing the relevant authorities to pay compensation worth SAR1.05 billion (USD279.98 million), equivalent to SAR30 per share, to stakeholders of the defunct Saudi Integrated Telecom Company (SITC), Zawya reports.
According to TeleGeography’s GlobalComms Database, in 2011, SITC, which had financial backing from Hong Kong’s PCCW, undertook a SAR300 million initial public offering (IPO), which was reportedly more than twice oversubscribed. However, in September 2012 the company was fined SAR200,000 by the Capital Market Authority (CMA), for allegedly violating markets and listing rules. Subsequently, in February 2013 trading in SITC shares was suspended, after the Communications and IT Commission (CITC) requested the termination of the company’s licence. The telecoms ministry cancelled SITC’s operating licence in May 2013, and under a Royal Decree the financially troubled telecoms company was set to be liquidated in the following month.