DUBAI – Leading UAE construction firm Arabtec Holding has announced the launch of a rights issue aimed at raising up to Dh2.35 billion ($640 million) to fund its five-year growth strategy.



A leading MENA construction company specializing in complex projects, Arabtec said the subscription period for its shareholders to apply for and acquire their entitlement to rights issue shares will continue until June 23.



The Dubai-based builder is expanding into high-margin areas of construction, particularly oil and gas, power and infrastructure and aims to use the capital for the purpose. The company is also extending its footprint across the GCC countries, with earnings from Saudi Arabia, Qatar and Kuwait growing rapidly in the last year and going forward.



Commenting on the move, CEO and managing director Hasan Abdullah Ismaik said the Arabtec board has approved a detailed growth strategy for the next five years, which is underpinned by organic as well as acquisitive growth, and the formation of significant joint ventures.



"We are confident that shareholders will participate actively in the rights issue in order to share fully in our expected growth in coming years.  We would encourage shareholders to participate in the Rights Issue subscription in a timely manner to secure their Rights Issue shares," he said. – Agencies