15 UAE-listed firms hike capital by $1.5bn in 2017

By: Bedour Al Raie

Abu Dhabi – Mubasher: UAE-listed companies increased their capital by AED 5.5 billion ($1.5 billion) in 2017 through a variety of methods, such as rights offerings in Arabtec Holding and Dar Al Takaful, or through bonus shares as with Dubai Investments.

Other companies raised their capital through private placement and sukuk issuance, among them were Tabreed and Drake and Scull International (DSI).

Eight companies listed on the Dubai Financial Market (DFM) increased their capital by around AED 4.61 billion, while six companies on the Abu Dhabi Securities Exchange (ADX) raised their capital by AED 830.815 million.

Arabtec's restructure programme

The company raised AED 1.5 billion by offering 1.5 billion shares at AED 1 per share and paid in AED 4.6 accumulated debt.

Real estate companies’ performance is still negative, given that many of them are undergoing restructuring schemes to reverse major losses, financial analyst at MenaCorp Issam Kassabieh told Mubasher.

Arabtec Holding succeeded in its restructure and was awarded new projects, which will boost its revenues, Kassabieh added.

Similarly, in July, the National Central Cooling Company’s (Tabreed) board nodded to an AED 1.977 billion capital increase, boosting its capital to AED 2.7 billion from AED 738.5 million.

AED 1.07 billion bonus shares

Earlier in 2017, nine companies approved AED 1.07 billion in bonus shares to increase their capital, including Sharjah Islamic Bank, which distributed AED 242.55 million in dividends.

Union Properties’ (UP) shareholders approved the offering of bonus shares, which represented 8% of the company’s paid capital or 317.7 million shares, with a total value of AED 317.7 million.

In April, Dubai Investments’ shareholders also approved a 5% bonus shares hike, which represented 202.4 million shares.

In October, DSI reduced its capital by 75% to AED 571 million from AED 2.286 billion, then increased it by AED 500 million through issuing 500 million shares for Tabarak Investment. 

Translated by: Muhammad Khalid