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| 02 January, 2018

Gulf Navigation to raise $122mln through IPO

Company aims to increase its paid-up share capital to $272mln

Image used for illustrative purpose.
Packs of U.S. one hundred dollar bills are counted at a bank in Westminster, Colorado November 3, 2009.

Image used for illustrative purpose. Packs of U.S. one hundred dollar bills are counted at a bank in Westminster, Colorado November 3, 2009.

REUTERS/Rick Wilking
UAE - Gulf Navigation Holding will hike its capital by Dh448.33 million through an initial public offering (IPO) to increase its paid-up share capital to Dh1 billion in the first quarter of 2018.

The paid-up capital will be spread over one billion shares at a par value of Dh1 per share. The capital increase will also support the company's expansion plans as it intends to double its fleet size to 20 vessels by 2020.

The company said its assets grew by 12 per cent in 2017 which is approximately Dh117 million as compared to previous year. The company's announcement to increase capital is considered as one of the financing options that will improve its investment position. This will give further support to the company's previous announcement to introduce a $250 million Islamic sukuk investment that will be provided in stages. It will provide a continuous cash flow to enhance the group's efficiency in expanding its projects.

"Since July 2016, when we launched our new strategy, we continued day by day with the expansion and success we promised to our investors and shareholders," said Khamis Juma Buamim, managing director and Group CEO of Gulf Navigation Holding.

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