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 Drake & Scull International Begins Subscription Process of Its Shares


Drake & Scull International Begins Subscription Process of Its Shares

As part of its restructuring process, Drake & Scull International, a global engineering listed on Dubai Financial Market (DFM), on Thursday commenced the subscription process of its shares which will end on 10 May 2024.

The capital increase is set at $163.36 distributed over 2.4 billion shares and will support the company’s future growth and liquidity to needs. The company’s shareholders will also benefit from subscribing to the new shares at a discounted price of 25 fils per share, the company said in a filing with DFM this morning.

The subscription process will take place through the main offices of Emirates NBD across the UAE, in addition to the branches of Commercial Bank of Dubai in Abu Dhabi, Dubai and Sharjah.  Emirates NBD has also allocated a special number to respond to all shareholders’ inquiries (800 3623 476).

The company was able to complete all the requirements aimed at its restructuring, as its general assembly, which was held on 1 April 2024, approved the proposals of its board of directors aimed at restructuring it and increasing its capital.

IMAGE CREDIT: Drake & Scull International

Only for Existing Shareholders

In accordance with the requirements of the UAE’s Securities and Commodities Authority (SCA), the subscription will be limited to the company’s current shareholders. It is expected that trading in the company’s shares will resume on 21 May 2024.

Drake & Scull International Chairman Shafiq Ahmed Saleh Abdelhamid said that they have gone through a long and challenging journey, and together have been able to reach this important stage that will allow the company to resume the company’s business and activities in the market.

He said that they have set a comprehensive capital restructuring plan aimed to avoid liquidation of the company, ensure the best interests of shareholders, and ensure business continuity, in addition to achieving better returns for creditors compared to what they could have obtained in the event of liquidation.

“From this standpoint, the restructuring of DSI and bringing it back to operations would support the national economy and enhance confidence in the financial market, Abdelhamid added.

The restructuring plan stipulates the writing off 90% of the claims of financial and trade creditors and settling the remaining 10% by issuing Mandatory Convertible Sukuks that will convert into shares after 5 years for creditors with balances in excess of more than $272 million.

Following the capital restructuring, the company aspires to strengthen its portfolio of projects, in addition to the completion of the current project portfolio.

On the other hand, the writing-off liabilities will lead to capital gains that will positively affect shareholders’ equity; whilst the Mandatory Convertible Sukuks will further enhance the equity position.

At the same time, the capital increase will support the recapitalisation process and enhance the company’s liquidity. The cash will be used to enhance access to bank guarantees, which are considered a pivotal basis for winning new projects and completing current projects; fund business operations; and settle other obligations.

Global Business Magazine

Global Business Magazine

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