Galfar shareholders approve rights issue
Firm raises $36m via 1.5-for-10 share issue to support growth plans
Shareholders of Oman's biggest contractor, Galfar Engineering, have approved a proposal to raise $36m through a rights issue. The company is issuing 1.5 new shares for every 10 existing shares held at a price of 280 baizas per share.
Shareholders also agreed a cash dividend of 17.5% for 2012 at an extraordinary general meeting (EGM) on 30 March, and approved the appointment of two new directors to the board - Hamad Mohamed Hamood Al Wihaibi, and Ms. Khulood Mohamed Rshid Al-Araimi.
The money from the rights issue is being used "for strengthening the company's balance sheet and support its long term growth".
Following the rights issue, the paid up share capital of the company has increased by $12.86m (OR: 4.95m) to $98.57m (OR: 37.95m).
In the year to December 31, 2012, Galfar Engineering increased net profits by 75% to $23.9m. Revenues climbed by 9.5% to $874.5m.