Saudi Mobily to increase capital by 10 pct through bonus shares

JEDDAH, Saudi Arabia Sat Jan 12, 2013 9:27am EST

JEDDAH, Saudi Arabia Jan 12 (Reuters) - Saudi Arabia's Etihad Etisalat (Mobily) said on Saturday it has approved a board recommendation for a 10 percent 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 7.7 billion riyals from 7 billion riyals 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.

(Reporting by Asma Alsharif; editing by Sami Aboudi)