Dubai construction giant's CEO says funds raised will drive growth during 'pivotal moment'
Dubai contractor Arabtec Holding said on Monday that its AED2.4bn ($653m) rights issue was nearly 30 percent oversubscribed.
The capital call, which saw 1.56 billion new shares offered at 1.5 dirhams each, had its offer period extended by two weeks after the company said shareholders had requested more time to participate.
Hasan Abdullah Ismaik, managing director and CEO of Arabtec, said: “Our shareholders have given Arabtec the strongest vote of confidence in the company, its people and in our expansion plans.
“As a result of the rights issue and progress to date of our sound strategy, Arabtec’s market capitalisation has reached almost AED7bn."
He said so far in 2013, the company has been awarded projects with a gross value of AED13bn across the Middle East, North Africa and Central Asia.
Ismaik added: “As regional markets return to economic growth, we can now take Arabtec forward as an industry leader and capitalise on the exciting growth opportunities available to us.
"Our existing businesses already have a strong pipeline of potential new contracts to complement our growing backlog of projects.
"The proceeds from the rights issue will create opportunities that will increase and diversify our revenue streams. This is a pivotal moment for Arabtec, which has entered a new era of growth.”
The new shares will be allotted and surplus funds returned to investors in coming weeks, Arabtec added in Monday's bourse filing.
* With Reuters