Dubai – Mubasher: Shares in Arabtec Holding’s rights issue for a capital increase rose by 690% on Monday to AED 0.079 per share amid speculation that the first step in the company’s capital restructure programme will succeed.
By 11:00 am UAE time, buying offers for the rights issue reached 2.19 million shares versus 661,970 in sales.
Earlier on Monday, analysts told Mubasher that they expected Arabtec’s "rescue" plan to succeed.
The Dubai-listed contractor’s rights issue is for AED 1.5 billion, with subscription closing set to end on 28 May 2017. As a result, the company’s capital will rise from AED 6.115 billion to AED 4.615 billion.
The announcement of the restructure plan followed Arabtec incurring AED 3.512 billion in losses in 2016, up from AED 2.78 billion in 2015.
Non-participating shareholders will be diluted up to 24.53%, Arabtec said in a previous bourse statement.
Last week, the real estate construction firm reported swinging to profits in the first quarter of 2017 with AED 17.62 million ($4.8 million), against losses of AED 46.4 million ($12.63 million) in Q1-16.
