The four-year-old telecom firm, known officially as Emirates Integrated Telecommunications Co., said Monday it plans to use the additional funds to build up its existing networks.

“One of our goals is to transform Du from a high growth early stage venture to a more mature company with efficient management of future funding requirements,” Chairman Ahmad Bin Byat said. “The capital raised through this rights issue will provide the necessary first step.” Du is seeking shareholder approval to issue 1 billion dirhams ($272 million) worth of new securities to its existing investors.

It said its government-backed founding shareholders, who together own about 80 percent of the company, fully support the plan and have agreed to underwrite the rights issue.

Those shareholders are Emirates Investment Authority, Mubadala Development Co. and Emirates Communications and Technology LLC.

The rest is available to the public.

The EIA is an Abu Dhabi-based federal fund designed to support United Arab Emirates businesses, while Mubadala is an investment vehicle run by the oil-rich UAE capital Abu Dhabi. The third major shareholder is a division of Dubai Holding, which is controlled by that indebted emirate's hereditary ruler.

Du's plan comes as Dubai companies look for additional funding sources to pay for expansion amid the fallout of the emirate's debt crisis. The company has a 3 billion dirham ($817 million) loan that comes due next year.

Simon Simonian, an analyst at Dubai-based investment bank Shuaa Capital, said it was not surprising Du is turning to its existing shareholders for more funds given the company's growth plans. The buy-in could also reassure lenders when the company tries to refinance its existing debt or take on new loans.

“We were expecting some kind of equity injection,” Simonian said. “To get the best terms for your debt ...

the shareholders have to put some money on the table.” Du has grown rapidly since its founding in February 2006, and now boasts a market share of more than 32 percent in the Emirates. It competes with another state-backed telecom, Abu Dhabi-based Emirates Telecommunications Co., known as Etisalat.