Wednesday, Jun 21, 2017

Dubai

Arabtec Holding said on Wednesday it has obtained regulatory approval to add 1.5 billion shares to those already listed on the Dubai Financial Market (DFM). Trading on the new shares commenced on June 21.

The nod from the market regulator comes after the Dubai-listed construction firm’s board approved increasing the company’s capital to Dh6.1 billion from Dh4.6 billion following the Dh1.5 billion rights issue launched in mid-May.

The rights issue is part of Aratec’s recapitalisation plan to turnaround financial performance. It will be followed by a capital reduction exercise to extinguish the company’s accumulated losses, which stood at Dh4.6 billion at the end of December 2016.

In its statement on Wednesday, Arabtec said the designated date for the capital reduction from Dh6.1 billion to Dh1.5 billion is June 21, and that the company expects the market regulator to issue a certificate approving that.

Subject to the regulatory approval being obtained, the last day of trading before restatement will be June 22, the company said. The ex-date when the number of shares is reduced and share price restated will be June 28.

Arabtec’s share prices fell 1.35 per cent on Wednesday, though that was amid a broader risk-off sentiment in the market as oil prices dropped. The DFM index ended nearly 1 per cent lower at 3,418.30.

Staff Report

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