Arabtec share prices dropped as much as 9 percent on Wednesday in the first few hours of trade as the company announced it has completed its recapitalisation programme, which involved a rights issue and capital reduction.
Arabtec’s shares were among the most actively traded on the Dubai Financial Market (DFM) on the first day of trade this week after the three-day Eid Al Fitr holiday.
The sell-off on Wednesday comes just after Arabtec slashed its capital by Dh4.6 billion to extinguish accumulated losses, thereby also cutting 4.6 billion shares off the bourse.
This was part of the company’s recapitalisation programme, which started with a Dh1.5 billion rights issue launched in mid-May that was fully subscribed by the company’s largest shareholder, Aabar Investments.
The move increased Arabtec’s share capital to Dh6.1 billion from Dh4.6 billion. This was then cut to Dh1.5 billion with the capital reduction measure.
At 1pm (UAE time), Arabtec’s share prices were trading at Dh2.78.
By Sarah Diaa
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