FTSE Russell raises Drake & Scull’s weight on index
Drake & Scull International (DSI) has announced that the foreign ownership limit (“FOL”) used to calculate its free float weight on the FTSE Russell Index has been increased to 39%
Drake & Scull International (DSI) has announced that the foreign ownership limit (“FOL”) used to calculate its free float weight on the FTSE Russell Index has been increased to 39% following a positive December 2017 review.
DSI was official included in the MSCI GCC Index last month amid growing market confidence after the completion of the company’s major Recapitalisation Programme.
DSI’s stock is currently assigned a 39% FOL Free Float on the FTSE Russel Index but is expected to gain a 5% headway in March after the group’s efficient execution of a turnaround plan geared towards revitalizing financial and operational performance.
Rabih Abou Diwan, investor relations director Drake & Scull International PJSC, said: “The upgrade by FTSE Russell marks a very positive step for DSI as we reorient the organization towards recovery and growth.
“It comes just a month after our inclusion in the MSCI GCC Index, affirming the resounding success of the turnaround plan we initiated last year.
“We are firmly committed to continue our comprehensive recovery and undertake more proactive measures to enhance our transparency, governance and efficiency.”
The move by FTSE Russell is expected to help bolster investor interest in the company after several years of internal instability and mounting accumulated losses.
DSI secured new credit lines and working capital facilities earlier this month for its ongoing and new projects portfolio under continued support from Tabarak Investment.
The company also announced in January the completion of the restructuring of its corporate general bank debt in the UAE.