Drake and Scull International (DSI) has resumed trading on the Dubai Financial Market (DFM) after more than five years of suspension for restructuring. The company had secured approval from the Dubai Financial Market and Securities and Commodities Authority in March to reinstate its shares following the acceptance of its Restructuring Plan by the Dubai Courts, which writes off 90 per cent of its debt. Shafiq Abdelhamid, Chairman of the Board of DSI, expressed his satisfaction with the success of the subscription process for the company’s shares, which exceeded Dh450 million, allowing the company to cover the minimum targeted capital. This milestone is expected to contribute to completing the restructuring process and supporting the company’s future growth plans and new projects in all operating sectors.
With the net proceeds from the capital increase, DSI aims to enhance working capital, capital expenditures, and support operations, as well as potential acquisitions. The company is focused on implementing its future business plan and financing new projects to strengthen its position in the market. This development comes after DSI reported losses in 2015 due to payment deferrals and project delays caused by the decline in oil prices. After the departure of CEO Khaldoun Tabari in 2016, DSI underwent multiple changes in leadership, with five chief executives and four chief financial officers being replaced.
The successful resumption of trading on the DFM marks a significant milestone for DSI as it continues to navigate its restructuring process and focus on future growth opportunities. The company’s ability to raise capital and cover its minimum targeted amount demonstrates investor confidence in its prospects. With a renewed focus on enhancing working capital and financing new projects, DSI is well-positioned to capitalize on opportunities in the market and drive its business forward. By leveraging the net proceeds from the capital increase, DSI aims to strengthen its operations and support future growth initiatives across all operating sectors.
The success of the subscription process reflects a positive outlook for DSI and its ability to attract investor interest in its restructuring efforts. As the company moves forward with its business plan and strategic initiatives, it aims to position itself as a key player in the market and deliver value to its shareholders. With a clear focus on working capital enhancement and future growth, DSI is poised to capitalize on market opportunities and drive its business forward. The company’s resilience and commitment to its restructuring plan have laid a strong foundation for its future growth and success.
DSI’s resumption of trading on the DFM signals a new chapter for the company as it focuses on executing its business plan and enhancing its capabilities to drive growth. The successful completion of the subscription process and capital raise demonstrate investor confidence in DSI’s prospects and restructuring efforts. With a clear strategy in place to utilize the net proceeds for working capital and future growth initiatives, DSI is well-positioned to capitalize on market opportunities and strengthen its position in the industry. By prioritizing operational efficiency and strategic investments, DSI is setting the stage for sustainable growth and long-term success in the market.
