Dubai-based contractor Drake & Scull raised over AED 450 mn in a capital increase, making it eligible to re-list the DFM, according to a press release. The capital increase — which comes as part of its restructuring plans — brings its total issued capital to around AED 2.89 bn, distributed over some 2.89 bn shares.

REMEMBER- The company planned to issue up to 2.4 bn new shares — or AED 600 mn worth of shares — as part of its restructuring plans to resume trading on the DFM. The minimum threshold that would allow the company to relist on the DFM was AED 300 mn.

The details: Shares in the capital increase were priced at a markdown of 75 fils from their fair value, at 25 fils per share. The markdown will be recorded as a negative reserve on the company’s balance sheet.

Where will the funds go? The raised funds will cover debts, former employee payouts, government fees, and support operational activities and potential acquisitions.

Background: The DFM approved its restructuring plan — which will write off 90% of its debt — back in November 2023, which it was required to implement within a year from approval. The construction company was suspended from trading in November 2018 on the back of excessive financial losses and reporting violations.

What’s next? The company’s shares will resume trading on the DFM within the next few days, after completing regulatory requirements, the company said.

ADVISORS- Emirates NBD Capital served as lead manager and bookrunner, while Emirates NBD Bank served as lead receiving bank.

Tags: