#Dubai’s Drake & Scull International closes subscription

Dubai’s Drake & Scull International closes subscription

Dubai-based contractor Drake & Scull International (DSI) has closed the subscription for new capital, with proceeds exceeding 450 million UAE dirhams ($122.5 million), allowing the company to cover the minimum amount of targeted capital, a statement read.

The subscription process, for the period of April 25 and May 10 at a discounted rate of 25 fils per share, exceeded one and a half times the minimum required to complete the restructuring process, it said.

DSI stated the capital increase will finance new projects and potential acquisitions. Additionally, the company said it intends to use the net proceeds to enhance working capital and capital expenditures and support operations.

DSI’s new capital will amount to AED 2.88 billion, distributed over 2.88 billion shares. The company’s shares will resume trading on the Dubai Financial Market within the next few days after completing the procedures required by the regulatory and supervisory authorities.

Engineer Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International PJSC, said the success of the IPO will enable the company to regain its position in the markets of UAE, GCC and other regions around the world.

The subscription process took place through Emirates NBD and the Commercial Bank of Dubai in Abu Dhabi.