Abu Dhabi Airport Midfield Terminal... an Arabtec project.
Arabtec $653m rights issue oversubscribed
Dubai, July 8, 2013
Dubai-based Arabtec Holding today announced that its Dh2.4 billion rights issue ($653 million) was nearly 30 per cent oversubscribed by shareholders.
Arabtec, a leading Mena construction company specialising in complex projects, will use the proceeds from the issue to advance the implementation of the company’s growth strategy announced earlier in 2013.
Hasan Abdullah Ismaik, managing director and CEO of Arabtec, said: “Our shareholders have given the strongest vote of confidence for the company, its people and our expansion plans. Our company and employees thank them for making the rights issue the resounding success it is and we remain committed to enhancing shareholder value in the short and medium term. We would also like to thank Emirates Securities and Commodities Authority and the Dubai Financial Market for their support during the issue.”
He added: “As a result of the rights issue and progress to date of our sound strategy, Arabtec’s market capitalisation has reached almost Dh7 billion. So far in 2013, the company has been awarded projects with a gross value of Dh13 billion across the Middle East, North Africa and Central Asia, further strengthening Arabtec’s financial and commercial position, and expanding its regional and global footprint.”
Arabtec has stated that it will endeavour to target a dividend payout of at least 10 per cent per annum as part of its commitment to enhance shareholder value.
Ismaik concluded: “As regional markets return to economic growth, we can now take Arabtec forward as an industry leader and capitalise on the exciting growth opportunities available to us. Our existing businesses already have a strong pipeline of potential new contracts to complement our growing backlog of projects. The proceeds from the rights issue will create opportunities that will increase and diversify our revenue streams. This is a pivotal moment for Arabtec, which has entered a new era of growth.”
Arabtec has successfully raised Dh2.4 billion by issuing 1.56 billion new shares at Dh1.50 per share, which were offered to shareholders registered with the Dubai Financial Market (DFM) as on May 30, 2013.
In the coming weeks, the new shares will be allotted and surplus funds returned to shareholders. The company expects the shares to be listed on the DFM in the near future after obtaining all necessary regulatory approvals, a statement said.
Meanwhile, a new joint venture company, Arabtec-Samsung Engineering, is being formed to bring together two industry leaders and bid for major contracts in oil and gas, power and related infrastructure, the statement said.
New management systems and processes are being introduced across the Arabtec group of companies to enhance financial reporting and cost management.
The National Bank of Abu Dhabi acted as lead receiving bank; Abu Dhabi Commercial Bank acted as a receiving bank, Ernst & Young acted as the company’s auditor and Hadef & Partners acted as legal advisors for the rights issue. BofA Merrill Lynch acted as an advisor in connection with the rights issue, said the statement. – TradeArabia News Service