The subscription process for the capital increase of Drake & Scull International shares commenced today, Thursday, and is set to conclude on May 10, 2024. This process marks one of the final steps in the company’s restructuring journey, with the subscription amounting to 600 million dirhams distributed over 2.4 billion shares. This initiative aims to bolster the company’s capacity and secure sufficient cash liquidity to execute its business plan and achieve its objectives.
Shareholders stand to benefit from subscribing to new shares at a discounted price of 25 fils per share, as stated in a company announcement. The subscription process will take place at the main offices of Emirates NBD and branches of the Commercial Bank of Dubai in Abu Dhabi, Dubai, and Sharjah.
To participate in the capital increase, shareholders must ensure their names appear in the company’s share register maintained by the Dubai Financial Market by April 24, 2024, and possess an investor number registered with the Dubai Financial Market.
Drake & Scull International reported completing all restructuring requirements, including board-approved proposals and a successful general assembly meeting held on April 1, 2024. In compliance with Securities and Commodities Authority requirements, subscription to the stock will be limited to current shareholders, with trading expected to resume on May 21, 2024.
Shafiq Abdel Hamid, Chairman of the Board of Directors, expressed gratitude to shareholders for their patience during the stock’s suspension since 2018. He emphasized the company’s commitment to restructuring its capital to avoid liquidation, safeguard shareholder interests, ensure business continuity, and enhance market confidence.
The restructuring plan focuses on rebuilding confidence by leveraging core strengths, writing off 90% of receivables, and issuing mandatory bonds convertible into shares after five years. The company aims to strengthen its project portfolio, secure new projects, and complete ongoing projects, with the capital increase supporting recapitalization and liquidity enhancement.
The infusion of cash will aid in obtaining bank guarantees for project acquisition, settling restructuring-related dues, financing business activities, and meeting obligations, thereby facilitating the company’s return to market operations and contributing to the national economy’s stability and market confidence.
