By: Mahmoud Gamal
Dubai – Mubasher: Arabtec Holding’s stock rose in Tuesday’s trading session following the announcement of a rights issue launch.
The stock added 0.7% to AED 0.858 by 12:40 am UAE time, with a turnover of AED 29.83 million generated from the exchange of 34.53 million shares.
The company will launch an AED 1.5 billion rights issue as of 15 May, with the subscription closing date set at 28 May.
Investors’ fears over Arabtec’s stock started to decrease as the company began implementing the restructuring plan to prevent itself from stumbling, capital market analyst Ahmed Ismail told Mubasher.
Arabtec’s plan will take time but successive announcements of the steps already taken shows the company’s seriousness to resolve its issues, the analyst added.
The company’s main issue is to bring operations costs to a lower level than the expected profits for the coming period, Ismail noted.
Translated by: Julian Nabil
