RIYADH: Shares in Saudi Arabia’s top telecom company rose the most in almost 16 years after the company announces plans to boost quarterly dividends and says it may consider handing over more money to investors via special payments.

Saudi Telecom Co (STC) jumped 9.9% on the Saudi stock exchange last Sunday to 43.70 riyals or about US$11.65 a share, its biggest move on a closing basis since October 2008.

The stock climbed after the company said it will pay a dividend of 0.55 riyals per share every quarter for the next three years, starting in the final three months of 2024.

That raises the annual cash dividend programme by 37.5% and is reflective of STC’s “solid financial position”, according to a company statement.

STC, as the local telecom giant is known, may also consider paying special dividends after assessing its financial position, future outlook, strategic investments, and capital expenditure needs. Saudi Telecom is pursuing expansion plans as it looks to boost its business beyond Saudi Arabia’s borders.

 - Bloomberg