Arabtec to raise $640m from rights issue
Dubai, June 9, 2013
Leading UAE construction firm Arabtec Holding has announced the launch of a rights issue aimed at raising up to Dh2.35 billion ($640 million) to fund its five-year growth strategy.
A leading MENA construction company specialising in complex projects, Arabtec said the subscription period for its shareholders to apply for and acquire their entitlement to rights issue shares will continue until June 23.
The Dubai-based builder is expanding into high-margin areas of construction, particularly oil and gas, power and infrastructure and aims to use the capital for the purpose.
The company is also extending its footprint across the GCC countries, with earnings from Saudi Arabia, Qatar and Kuwait growing rapidly in the last year and going forward.
Commenting on the move, CEO and managing director Hasan Abdullah Ismaik said the Arabtec board has approved a detailed growth strategy for the next five years, which is underpinned by organic as well as acquisitive growth, and the formation of significant joint ventures.
"We are confident that shareholders will participate actively in the rights issue in order to share fully in our expected growth in coming years. We would encourage shareholders to participate in the Rights Issue subscription in a timely manner to secure their Rights Issue shares," he observed.
Arabtec said all shareholders who were on the official Dubai Financial Market register as at the end of the official working hours on May 30, 2013 were entitled to apply for one additional share for every share they hold.
Eligible shareholders will be able to apply for rights issue shares during the official working hours from participating branches of National Bank of Abu Dhabi and Abu Dhabi Commercial Bank, said the company statement.
Application forms for subscription and the invitation to subscription documents are available in any of the participating branches of the banks, and the subscription invitation documents are available on the Arabtec website, it added.
According to Ismaik, Arabtec’s current backlog is valued at more than Dh21 billion. "In addition, our growth strategy is designed to deliver superior returns to our shareholders," he remarked.
The recent major project wins include a Dh810 million hotel and apartments contract in Dubai’s Business Bay area, a Dh770 million project for a tourist complex in the Aqaba region of Jordan and a Dh725 million hotel and apartment project in Amman, the statement said.
Besides this, the UAE contractor also clinched a Dh1 billion contract to build the Fairmont Hotel in Abu Dhabi, a Dh243 million project for residential villas in Dubai and a Dh238 million project for a hospital and medical centre in Saudi Arabia, it added.-TradeArabia News Service