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.

Related:
Companies
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
Blood on the bourse floor

Blood on the bourse floor

Arabtec’s share price collapse was the catalyst for a huge sell...

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...

Most Popular
Most Discussed
  • 20
    Why Dubai should consider removing the rent cap

    Not even one comment supporting the author. I wonder if he is trying to create a bubble. more

    Monday, 24 November 2014 2:25 PM - Anil
  • 14
    Life sentence for London hammer attacker

    The death sentence is a free pass. The purpose of punishment has always been to provide a lesson for misbehaving. No one learns a lesson by dying. Life... more

    Friday, 21 November 2014 2:02 PM - LordLands
  • 5
    Is this the end of F1?

    Compare this to WEC and you see a stark difference. The 'formula' for WEC is much more wider and more accomodating. They have been runnning hybrids for... more

    Monday, 24 November 2014 2:30 PM - Vincent