Dubai-listed contractor Drake and Scull International (DSI) has resumed trading on the Dubai Financial Market (DFM) after a suspension of over five years for restructuring.
In March, DSI received approval from the Dubai Financial Market and Securities and Commodities Authority to reinstate company’s shares, following the Dubai Courts' acceptance of its Restructuring Plan that writes off 90% of its debt.
Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International, commented, “This step follows the successful subscription process for the company's shares, which began on April 25 and ended on May 10, raising over Dh450 million in new capital, exceeding the targeted minimum amount.”
Abdelhamid emphasized that this milestone will contribute to completing the restructuring process, as well as supporting the growth of Drake & Scull International's business and its ability to implement its future business plan and finance new projects across all operating sectors.
The company plans to use the net proceeds from the capital increase to bolster working capital, fund capital expenditures, and support operations, future growth, and potential acquisitions.
In 2015, DSI reported losses due to payment deferrals and project delays resulting from the decline in oil prices. After Khaldoun Tabari's departure as CEO in 2016, the company underwent multiple executive and financial leadership changes.
