Arabtec plans to raise a total of $1.8 billion to boost its property operation in Dubai
06/03/2013
Arabtec, a largest construction company in UAE by market value, has a plan to raise a fund worth of billions of dollars ( $1.8 billion ) as a new capital to improve its business in the property market, which will be used for convertible bond to finance growth. A few days ago, as part of its management strategy, it replaced its Founder and Chief Executive Officer (CEO), Riad Kamal, with Hasan Abdullah Ismaik, an Abu Dhabi-based Private Investor who was appointed in the midst of the company’s drop in its share price over worries of dilution and larger control for Aabar Investments’ fund. In fact, the latter has already a total of 22 per cent stake in the company.
According to him, he said that having such rights issue to fund the new strategy is that it will just enable the shareholders of the company to be part of its future growth in particular. Then, he further said that Arabtec really has a clear vision for its future earnings by improving its global operations in the following Gulf Arab countries: Kuwait, Kingdom of Saudi Arabia, Oman, Qatar, and UAE.
As newly-appointed CEO, he concluded that the company is now not planning to borrow more or any loans from lenders but rather reduce its debt instead. Then, it absolutely wants to preserve its liquidity. So far, both the company and the WCT, a Malaysian Engineering Firm, have won a joint-venture contract worth of $1.3 billion to construct The Meydan Racecourse which was launched prior to economic crisis.
According to him, he said that having such rights issue to fund the new strategy is that it will just enable the shareholders of the company to be part of its future growth in particular. Then, he further said that Arabtec really has a clear vision for its future earnings by improving its global operations in the following Gulf Arab countries: Kuwait, Kingdom of Saudi Arabia, Oman, Qatar, and UAE.
In the first place, Aabar Investments owns a number of stakes in the company including Commodity Trader, Glecore International PLC, and UniCredit, an Italian Bank. Actually, it has been helping Arabtec to some extent since it started buying those shares in 2012.
As newly-appointed CEO, he concluded that the company is now not planning to borrow more or any loans from lenders but rather reduce its debt instead. Then, it absolutely wants to preserve its liquidity. So far, both the company and the WCT, a Malaysian Engineering Firm, have won a joint-venture contract worth of $1.3 billion to construct The Meydan Racecourse which was launched prior to economic crisis.
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