Arabtec raises $653m via rights issue
Dubai, July 27, 2013
Arabtec Holding, a leading Mena construction company specialising in complex projects, has raised Dh2.4 billion ($653 million) via a rights issue of shares.
The company issued 1.56 billion new shares at Dh1.50 per share and the rights issue was nearly 30 per cent oversubscribed by shareholders. Arabtec will use the proceeds from the rights issue to advance the implementation of its growth strategy announced earlier in 2013.
The newly allotted shares will start trading on July 28, and the excess funds and interest have been returned to subscribed shareholders, a company statement said.
Hasan Abdullah Ismaik, managing director and CEO of Arabtec, said: “We are now ready to accelerate the implementation of our growth strategy and ultimately deliver value to our shareholders, especially with the dynamic progress being achieved across our business portfolio which is already helping to grow our backlog.”
So far in 2013, the Company has been awarded projects with a gross value of Dh13 billion in the Middle East, North Africa and Central Asia, further strengthening Arabtec’s financial and commercial position, and expanding its regional and global footprint.
“There is a strong pipeline of potential new contracts to complement our growing backlog of projects and the outlook for the construction sector is positive, underpinned by government expenditure and regional economic development,” he added.
As the company continues to implement its planned growth strategy, it has stated that it will endeavour to target a dividend payout of at least 10 per cent per annum as part of Arabtec’s commitment to enhance shareholder value.
Since announcing its growth plans earlier this year, the company has enhanced its management team, combining experience and expertise in all the sectors which the company has targeted for growth.
A new joint venture company, Arabtec-Samsung Engineering, is being formed to bring together two industry leaders and bid for major contracts in oil and gas, power and related infrastructure. – TradeArabia News Service
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