Arabtec to extend $650m rights period
Arabtec Holding on Sunday said the subscription period for its $650 million equity rights issue has been extended to July 4, 2013.
Arabtec Holding on Sunday said the subscription period for its $650 million equity rights issue has been extended to July 4, 2013. Subscription for Arabtec’s rights issue was due to end on Sunday, two weeks after its launch on June 9. The issue is to help the builder expand its regional operations.
The fundraising is part of Arabtec’s five-year expansion plan, which includes a further capital increase of $650 million by the end of 2014 if required. The company is selling 1.57 billion new shares at a price of Dh1.5 a share.
Arabtec shares closed at Dh2.15 on Sunday, down 5.3 per cent. Arabtec, builder of Dubai’s famous palm islands, has been on an aggressive push for growth after it replaced its chief executive earlier this year in a shakeup led by Aabar, its largest shareholder, which has been tightening its grip on the group.
The company has won a series of contracts under the new management this year amounting to Dh13 billion ($3.5 billion) so far, mainly in the Abu Dhabi.Dh179 million contract. Meanwhile, the company announced that its specialist home construction unit, Arabtec Living, has been awarded a Dh179 million contract for the construction of the third phase of Dubai Silicon Oasis (DSO) Cedre Villas project.
The 53,000sqm extension will be completed over a period of 15 months, and will add 160 villas to the Cedre Villas Complex. “This new contract is further testament to Arabtec Living’s established reputation in the residential villa sector,” Hasan Abdullah Ismaik, managing director and CEO of Arabtec Holding said. Arabtec has delivered more than 13,000 villas in the last decade alone, providing high quality homes for about 50,000 people.
It is currently building another 8,000 villas in the UAE and across the region. The total gross value of contracts awarded to Arabtec in 2013 is nearly Dh13 billion, with a backlog of projects that are ongoing or in initial stages valued at nearly Dh20.4 billion by the end of the first quarter of 2013.
The previous two phases of The Cedre Villas development project were built by Arabtec with the second phase completed in 2010. This third phase will feature two storey villas offering a total built up area of 3,800 square feet. The extension brings the total number of villas to 1,207.