Dubai-listed contractor Drake and Scull International (DSI) on Wednesday resumed trading on the Dubai Financial Market (DFM) following a suspension for restructuring of more than five years.
In March, DSI had secured approval from the Dubai Financial Market and Securities and Commodities Authority to reinstate company’s shares following the acceptance of the Dubai Courts of its Restructuring Plan that writes off 90 per cent of its debt.
Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International, said: “This step comes after the subscription process for the shares of Drake and Scull International PJSC, which began on April 25 and ended on May 10, has achieved a great success, as the proceeds of the increase in new capital exceeded Dh450 million, where the company was able to cover the minimum amount of targeted capital.
“This milestone will certainly contribute to completing the restructuring process, as well as working on the growth of Drake & Scull International business and its ability to commit to implementing its future business plan and financing its new projects in all its operating sectors. Additionally, the company intends to use the net proceeds from the capital increase to enhance working capital and capital expenditures and support operations, as well as future growth and any potential acquisitions”.
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In 2015, DSI had reported losses after the decline in oil prices forced developers and clients to defer payments and delay projects.
Following Khaldoun Tabari’s departure as CEO in 2016, it had replaced five chief executives and four chief financial officers.