Arabtec's rights issue begins
Shareholders have until June 23 to take up one-for-one share offer
The two-week window for Arabtec shareholders to subscribe for extra shares under the company's rights issue is now underway.
The firm is looking to raise up to $650m (AED: 2.35bn) during the first tranche of a two-phase rights issue - the second of which could take place during the first quarter of 2014.
It has also been granted permission by shareholders to raise a further $450m through non-convertible bonds to fund a five-year growth strategy which involves targeting growth in oil & gas and infrastructure through a new joint venture with Samsung Engineering as well as growing its affordable housing, MEP and facilities management businesses.
Arabtec is doubling the size of its share base through the new rights issue through the initial rights issue to 3,139,500,000 shares, and shareholders can apply for one new share for every existing share held at a price of AED: 1.50 per share, representing a nominal value oof AED: 1 per share and a 50fils premium.
Arabtec Holding CEO Hasan Abdullah Ismaik said: “The board of Arabtec has approved a detailed growth strategy for the next five years, which is underpinned by organic as well as acquisitive growth, and the formation of significant joint ventures.
"We are confident that shareholders will participate actively in the rights issue in order to share fully in our expected growth in coming years. We would encourage shareholders to participate in the subscription in a timely manner to secure their rights issue shares."
Since the start of June, Arabtec has announced several new contract wins including a $629m project for a new tourist resort in Aqaba in Jordan, a $220m five-star hotel in Dubai's Business Bay, a $197m deal to build three towers in Amman housing the first St Regis Hotel in Jordan and a $107.7m hospital project in Riyadh.
The firm's current project backlog stands at $5.7bn (AED: 21bn).