Dubai-based Gulf Navigation Holding’s board has approved the trading of rights issued in February 2018 to the company’s existing shareholders, without publicly offering the remaining shares.
GulfNav said that after the increase its capital stands at AED 919.2 million (USD 250 million) distributed to 919,209,250 shares at a nominal value of AED 1 per share.
The company announced a maximum of AED 488 million in capital increase through trading of the rights issue worth a total of AED 367.5 million (USD 100 million) from February 11 to March 1, 2018.
The capital raising is in line with GulfNav’s gradual growth plan and fleet expansion being implemented in stages since mid-2016.
“The amount collected in the capital increase is equal to 82 pct. This is sufficient to cover the company’s interim expansion plans and increase its assets over the short term. Therefore, the board of directors has decided to settle for the amount collected from existing shareholders and not go for a public offering. The objective of the public offering was to fulfill the need of major shareholders to increase their share in the company,” Khamis Juma Buamim, CEO of Gulf Navigation Holding Group, said.
“Based on the directives of the board of directors, the company will continue its expansion and increase its assets.”
Over the recent period, GulfNav has been focused on restructuring the company and settling debts as it worked toward diversifying its business portfolio and income sources.
These activities included expanding the geographical scope of its services, adding two petrochemical carriers to its assets, refinancing of the petrochemicals carriers, as well as launching talks to acquire new vessels and large shares in regional and international companies.