Dubai-based ship operator Gulf Navigation Holding has issued 220 mandatory convertible sukuk to new investors, with a one-year lock-in period.

The sukuk will be converted to 200 million shares at a price of 1.10 dirhams ($0.29), the only crude shipper listed on the Dubai Financial Market said in a regulatory filing on Friday.

The issuance and conversion will allow the company to increase its share capital to AED 837.7 million from the current AED 637.9 million, the company which had struggled with losses in recent years, said.

Following a financial restructuring, it reported a  net profit of AED 28 million for H1 2023 versus a loss of AED2.5 million in the prior-year period after it managed to write off accumulated losses for the first time in more than 10 years.

(Writing by Brinda Darasha; editing by Seban Scaria)