Gulf Navigation Holding has announced that it will increase its capital by AED 448,333,334 ($122 million) in a bid to increase its paid-up share capital to AED 1 billion ($272.23 million), the company announced on Wednesday.
The capital will be spread over 1 billion shares, each valued at AED 1. The IPO is expected to be launched in the first quarter of 2018, with the company saying the move will support expansion plans and ultimately lead to more profits.
"Since July 2016, when we launched our new strategy under the slogan "A broad vision to a new horizon" we continued day by day with the expansion and success we promised to our investors and shareholders,” said Gulf Navigation Holding CEO Khamis Juma Buamim. “In a short time we have been able to accomplish strategic partnerships that contributed to the value of our shares by 500 percent.”
“Today, we are ready to make a new move in our capabilities, as we are willing to increase the size of our fleet by 20 vessels by 2020 in order to keep up with the growing demand to ship petroleum and petrochemical products regionally,” he added.
According to Gulf Navigation, the company grew its assets by 12 percent – approximately AED 117 million ($32 million) – in 2017.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.