Arabtec rights issue investors suffer 33% loss

dubai — Investors who bought contracts that entitle them to participate in Dubai construction company Arabtec Holding PJSC’s rights issue were left with a 33 per cent loss at the end of the security’s single week of trading.

The contracts surged on their first day, the only session when no limits were placed on the price, carried on a wave of speculative buying, said Majd Dola, senior research analyst at Al Ramz Capital in Dubai. The securities rose as high as 21 fils (US 6 cents) on May 15, from an opening price of one fil, and settled at 9 fils. They ended at 6 fils on Sunday, their final session, having lost a third of their value from the close on the initial day of trade. — Bloomberg