Arabtec shares hit 2013 low on dilution fears

  • Share via facebook
  • Tweet this
  • Bookmark and Share

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.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Taking stock

Taking stock

Gulf stock markets have seen a dearth of IPOs since the global...

Steering clear of the stock markets

Steering clear of the stock markets

Listing was all the rage three years ago, but IPOs have since...

Egyptians vent post-revolt fury in litigation

Egyptians vent post-revolt fury in litigation

Bankers, stockbrokers say indiscriminate corruption probes may...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams