Dubai-listed contractor Drake and Scull International (DSI) resumed trading on the Dubai Financial Market (DFM) after more than five years of suspension due to restructuring.
In March, DSI received approval from the Dubai Financial Market and Securities and Commodities Authority to reinstate company shares, subsequently winning approval from the Dubai Courts for its Restructuring Plan, which writes off 90 per cent of its debt.
Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International, expressed that the subscription process for the shares of Drake and Scull International PJSC, conducted from April 25 to May 10, achieved great success. The increase in new capital surpassed Dh450 million, covering the targeted minimum capital amount.
This significant milestone will facilitate the completion of the restructuring process, enable growth within Drake & Scull International's business, and support the implementation of its future business plan and financing of new projects across all operating sectors. Furthermore, the company plans to utilize the net proceeds from the capital increase to enhance working capital, capital expenditures, operational support, future growth, and potential acquisitions.
In 2015, DSI reported losses due to the impact of declining oil prices, resulting in deferred payments and project delays from developers and clients. The departure of CEO Khaldoun Tabari in 2016 led to the replacement of five chief executives and four chief financial officers.
