The Board of Directors of the Gulf Navigation (GulfNav) Holding have approved the trading of the rights issued last February to the company’s existing shareholders, without publicly offering the remaining shares.

The move is in line with the company’s interim strategy to expand its services and gradually increase the size of its fleet to keep up with upcoming contracts and expansion projects, considering its future expansion plans, reported Emirates news agency Wam.

The company's capital now stands at Dh919.2 million ($250 million). Gulf Navigation Holding announced a maximum of Dh488 million in capital increase through trading of the rights issue from 11 February to 1 March 2018 with a total value of Dh367,542,584. The company’s capital after increase is Dh919,209,250 distributed to 919,209,250 shares at a nominal value of Dh1 per share.

The UAE nationals have contributed to 95 per cent of the shares, GCC citizens to 2 per cent, and other nationalities to 3 per cent.

Khamis Juma Buamim, board member and MD & Group CEO of Gulf Navigation Holding Group, said, "We have developed our strategic plan, which was approved by the Board of Directors, to be gradual in its growth and assets and is implemented in stages.”

“Since we started executing our strategic plan in mid-2016, we have succeeded in achieving steady progress in revenues. Our progress has encouraged our major investors to increase their shares in the company through trading rights issue, which has been conducted successfully. Our shareholders who wanted to increase their shares in the capital achieved their goals and we are thankful for their trust on us.

“The amount collected in the capital increase is equal to 82 per cent. This is sufficient to cover the company's interim expansion plans and increase its assets over the short term. Therefore, The Board of Directors has decided to settle for the amount collected from existing shareholders and not go for public offering. The objective of the public offering was to fulfil the need of major shareholders to increase their share in the company,” he added.