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Tue 20 Jun 2017 11:07 AM

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Dubai's Arabtec $409m rights issue fully subscribed

Company says it will use new funds to complete ongoing projects

Dubai's Arabtec $409m rights issue fully subscribed
Dubai Financial Market

Dubai construction company Arabtec Holding on Tuesday said its $409 million (AED1.5 billion) rights issue has been fully subscribed.

The rights issue, which opened on May 15 and closed on May 28, increased its capital to $1.66bn (AED6.1bn) from $1.25bn (AED4.6bn), the firm said in a statement posted on the Dubai Financial Market.

The new shares are expected to start trading from Wednesday, subject to regulatory approval. The company will use the new fund to complete ongoing projects, support management’s business plan, and provide financial flexibility to pursue growth opportunities.

“This marks a very important milestone for Arabtec Holding and signifies the ongoing support of our shareholders, both new and existing, who have not only invested in the company, but in the people of the company and their vision and mission for the future,” group chief executive officer Hamish Tyrwhitt said in statement.

On Sunday, Abu Dhabi-based National Marine Dredging Company said it has bought 100 million share worth AED100m in the rights issue.

In another statement, Arabtec said its board has authorised the group CEO to adopt all procedures and resolutions to confirm the reduction of the share capital by cancelling 4,615,065,000 shares.

The rights issue and capital reduction were part of its recapitalisation programme, announced in February this year, to aid in its turnaround, after the firm reported $926 million (AED3.4bn) in losses last year.

This month, the company reported its first quarterly profit since 2014, with a first quarter 2017 net profit of $4.90m (AED18m) compared to a loss of $12.53m (AED46m) in the same period last year.

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