UDC urges shareholders to boost capital by half
Pearl Qatar developer seeks next stage of financing for mega project
United Development Company has recommended a capital increase of 50% to shareholders for the next stage of its financing strategy for the Pearl Qatar mega project off Doha’s coast.
The developer, based at the foot of the 8km long artificial island, made the suggestion at an extraordinary general meeting on Wednesday. The added equity investment would be worth more than QAR800.4m and would be distributed over 80,437,500 shares. The company has a current market capitalisation of QAR3.147bn, according to Bloomberg data.
UDC said the shares would be offered publicly at a par value of QAR10 per share plus a premium value based on the share price at the time of issuance, with priority given to existing shareholders, the company stated to investors through the Doha Exchange website. Shares were trading at QAR19.63 by afternoon trading in Doha on Thursday.
UDC is forging ahead with its development of Pearl Qatar, which has seen uneven development since its launch in 2006 due to the wider financial crisis. The horseshoe-shaped Porto Arabia marina, which features a crescent of towers along with commercial and retail outlets, is nearing completion, though residential areas further out still require significant work.
Sources tell CW that the property arm of Al Arrab, the Saudi company that also operates in contracting and MEP, scaled back its initial plans for 17 towers to just a single structure. But earlier this year J&P, the Greek contractors, finished the island’s infrastructure, which included all bridges and utilities.
Revenue has increased 29.6% to QAR831m for the first six months of the year against those of 2010, boosting the operating profit from QAR283.8m to QAR348.5m. Its inventory level rose five-fold to QAR 1.1bn.
UDC shares closed up 0.358% to QAR19.63 on Thursday.