Dubai-listed contractor Drake and Scull International (DSI) has resumed trading on the Dubai Financial Market after more than five years of suspension for restructuring. In March, DSI secured approval to reinstate its shares following the acceptance of its Restructuring Plan that writes off 90% of its debt. The company’s Chairman, Shafiq Abdelhamid, announced that the subscription process for new shares was successful, with proceeds exceeding Dh450 million. This milestone will help in completing the restructuring process and supporting future business plans and projects.
DSI had reported losses in 2015 due to the decline in oil prices, leading to deferred payments and delayed projects. The departure of CEO Khaldoun Tabari in 2016 resulted in several changes in top management positions. The company aims to use the net proceeds from the capital increase to enhance working capital, support operations, and facilitate future growth and potential acquisitions. The successful completion of the restructuring process signifies a positive step towards the growth and stability of Drake and Scull International.
The resumption of trading of DSI’s shares on the Dubai Financial Market marks a significant achievement for the company after a challenging period. With the acceptance of the restructuring plan and the successful subscription process for new shares, DSI is now well-positioned to move forward with its future business plans and projects. The capital increase will provide the company with the necessary funds to support its operations, enhance working capital, and finance new ventures in all operating sectors.
The Chairman of DSI emphasized the importance of the milestone in completing the restructuring process and supporting the company’s growth trajectory. The successful subscription process for new shares indicates investor confidence in DSI’s future prospects and its ability to navigate through challenges effectively. With the net proceeds from the capital increase, DSI plans to strengthen its financial position, support operations, and fuel future growth initiatives. The company is committed to implementing its future business plan and expanding its presence in the market.
The reinstatement of DSI’s shares on the Dubai Financial Market is a positive development for the company and its stakeholders. The successful capital increase and the completion of the restructuring process demonstrate DSI’s resilience and determination to overcome obstacles and emerge stronger. With a clear focus on enhancing working capital, supporting operations, and pursuing growth opportunities, DSI is well-positioned to capitalize on market trends and drive sustainable business growth. The company’s strategic initiatives and commitment to operational excellence will play a key role in shaping its future success and long-term sustainability.
In conclusion, the resumption of trading for Drake and Scull International marks a significant milestone in the company’s journey towards financial stability and growth. The successful subscription process for new shares and the proceeds from the capital increase will provide the necessary resources for DSI to expand its business operations, support future projects, and pursue potential acquisitions. With a renewed focus on operational efficiency and strategic planning, DSI is poised to capitalize on market opportunities and enhance its competitive position in the construction industry. By leveraging its core strengths and implementing a forward-looking business strategy, DSI is well-equipped to navigate challenges and achieve sustainable growth in the years ahead.
