By: Mahmoud Gamal
Dubai – Mubasher: Arabtec Holding’s stock declined in Wednesday’s opening session, following the announcement of details on the developer’s rights issue.
The stock fell 6.16% to AED 0.764 by 11:45 am UAE time, generating AED 5.85 million from the exchange of 7.70 million shares.
The rights issue of Arabtec will be tradable on the exchange between 15 and 21 May.
The opening price of its rights issue is set at 1 fils as a minimum price through all of its trading sessions, according to a statement.
The rights issue’s price movement will be in line with Dubai Financial Market’s (DFM) fluctuation range of 15% up and 10% down from day two until the end of the trading period.
The stock saw strong sales due to fears over the company’s rights issue and an unclear financial position, following the rise of accumulative losses incurred by the company.
The company incurred losses of AED 3.512 million in 2016, compared to AED 2.778 million in 2015.
Arabtec is facing a big challenge amid this financial crisis that has started eight years ago, Al Taha said, adding that the company’s contracts direct expenses are higher than revenues generated.
The developer turned profitable after generating AED 17.62 million in Q1-17, while direct expenses stood at AED 2.08 billion.
Translated by: Julian Nabil
