Arabtec shares hit 2013 low on dilution fears

Shares in Dubai builder Arabtec fall to their lowest level in 2013, extending losses for a third session after the company announced plans to more than double its capital.

Arabtec said it plans to raise US$1.8bn in capital through a mixture of a rights issue and a convertible bond.

While the size of the capital increase has raised dilution fears for existing shareholders, analysts say those subscribing at the AED1.5 rights issue price will face no dilution.

Arabtec retreats 6.6 percent to AED2.25, after reaching its lowest price since December 30 in early trade.

Dubai's benchmark falls 1.2 percent to 1,913 points.