Date set for Dubai's Arabtec to trade rights issue

Move will allow existing shareholders to sell all or part of their rights to other investors

Shareholders of Arabtec Holding will be allowed to trade their rights issue on the Dubai Financial Market (DFM) from May 15 to 21.

The construction giant will raise $409 million (AED1.5 billion) through the issue of 1.5 billion new shares (priced at AED1), which will increase its capital to $1.66bn (AED6.1bn). The rights issue will open on May 15 and close on May 28.

In a statement, DFM said the rights issue will be solely tradable during the seven day period under the trading symbol (ARTC-RI).

Trading of the rights issue will allow existing shareholders who do not wish to subscribe to the new shares to sell all or part of their rights to other investors.

The opening price has been set at one fils as minimum price through all of its trading sessions. The rights issue will be free-floated on the first day only, while price movement will be allowed within the 15 percent up and 10 percent down band from second day until the end of the trading period, the stock exchange said.

Aabar Investments, which owns 36.11 percent stake in the company and is the single largest shareholder, will be underwriting the offer.

This month, Arabtec reported first quarterly profit since 2014 following the restructuring measures introduced by its management.

The construction firm reported $4.90 million (AED18m) in net profit for the first quarter of 2017 as against a loss of $12.53m (AED46m) recorded same period last year.

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