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(Bloomberg) — Shares in Saudi Arabia’s top telecom company rose the most in almost a decade after the company announced plans to boost quarterly dividends and said it may consider handing over more money to investors via special payments.

Saudi Telecom Co. jumped more than 9.9% at the start of trading on the Saudi stock exchange on Sunday, its biggest intraday move since 2014. 

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The stock climbed after STC, as the company is known, said it will pay a dividend of 0.55 riyals (15 US cents) per share every quarter for the next three years, starting in the final three months of 2024. That raises the annual cash dividend program by 37.5% and is reflective of the company’s “solid financial position.”

Saudi Telecom also said it may consider paying special dividends after assessing its financial position, future outlook, strategic investments, and capital expenditure needs.

STC is pursuing expansion plans as it looks to boost its business beyond Saudi Arabia’s borders. It agreed in April to sell a majority stake in towers unit Tawal to the kingdom’s sovereign wealth fund for $2.3 billion, in part to fund its growth strategy, and has had a keen eye on global acquisitions. 

It purchased a stake in Spain’s Telefonica for $2.25 billion in 2023 and is reported to have recently sought approval from the Spanish government to raise its position further. The company also pursued a bid for Altice’s Portugal unit, but those talks recently fell apart, according to the Portuguese news site Eco.

STC in July reported second-quarter profit that topped estimates, though sales trailed expectations. The company has seen “steady growth” as domestic demand continues to be propped up by energy prices, according to Bloomberg Intelligence analyst John Davies. He sees mid-single digit revenue growth over the course of 2024.

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