PHOTO
Dubai-listed contractor Drake & Scull (DSI) will resume trading on the Dubai Financial Market (DFM) on Wednesday following a suspension for restructuring of more than five years and losses dating back to 2015.
Last week saw a false start as the company’s planned return was delayed pending approvals. DSI proposes to return to trading at a reference share price of AED 0.25 ($0.07) following approvals from the DFM and the UAE's regulator, the Securities and Commodities Authority (SCA).
The company said in a disclosure to DFM that it has raised AED 454 million in a recent capital increase subscription but was carrying accumulated losses of AED 5.5 billion as of 31 March 2024.
However, the disclosure said it had agreed with creditors to write off 90% of claims amounting to AED 3.4 billion, to be registered as a gain in financial statements once written off.
The company said it had also agreed to offset remaining claims of AED 378 million by issuing a mandatory convertible sukuk (MCS) maturing in five years, which it said will have a positive impact on balance sheets.
Funds from the AED 454 capital raise are to be dispersed as AED 50 million to small creditors and to buy back its MCS as per the terms of the restructuring, AED 100 million to pay mandatory accounts payable, and the remaining AED 300 million to fund future operations and potential acquisitions to support the company’s growth, the disclosure said.
DSI was suspended from trading following spiralling losses and has been going through a restructuring process since 2018.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
