Mushrif raises capital by $37m
Kuwait, March 26, 2014
Mushrif Trading & Contracting, a leading civil construction company in the region, said it has increased its capital by KD10.7 million ($37.9 million).
The company’s total paid up capital has reached reach KD30.7 million with this placement, said a statement.
It received approval from the CMA to increase its authorised capital from KD20 to 40 million and also approval from the Ministry of Commerce and Industry for the capital increase.
The increase was recommended by the board of directors to the general assembly of shareholders, who also approved the increase.
The new funds will be utilised to reduce balance sheet debt, improve working capital ratios and support the creation of strategic partnerships where appropriate.
With a stronger balance sheet, it is the management’s belief that the company will be able to compete for higher value work in its core market and hence grow its backlog substantially, said the statement.
Faisal Juma Khalfan Belhoul, chairman, said: “We are very pleased with the successful capital increase and the positive implications this has for our business and its strategy. The new funds will enable Mushrif to reduce its non-project related debt and hence strengthen its balance sheet considerably.
“This will enable Mushrif to continue focusing on its core market of Kuwait and seek other growth markets within the GCC. By optimizing our balance sheet structure through the increase in capital, we have placed the business in a strong position to create further shareholder value.” - TradeArabia News Service