Gulf Navigation boosts capital via rights issue

dubai — The board of directors of Gulf Navigation Holding has approved the trading of the rights issued last February to the company’s existing shareholders, without publicly offering the remaining shares. The company’s capital now stands at Dh919 million.

The move is in line with the company’s interim strategy to expand its services and gradually increase the size of its fleet to keep up with upcoming contracts and expansion projects.

Gulf Navigation Holding announced a maximum of Dh488 million in capital increase through trading of the rights issue from February 11 to March 1, 2018, with a total value of Dh367 million.

The company’s capital after increase is Dh919 million distributed to 919 million shares at a nominal value of Dh1 per share.

UAE nationals have contributed to 95 per cent of the shares, while GCC citizens and other nationalities account for 2 per cent 3 per cent respectively.

Khamis Juma Buamim, board member and MD and Group CEO of Gulf Navigation Holding Group, said: “The amount collected in the capital increase is equal to 82 per cent. 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 public offering. The objective of the public offering was to fulfil the need of major shareholders to increase their share in the company.”

Among the key achievements of the company’s new strategic plan was the full restructuring of the company, the settlement of all previous debts and financial and legal issues and signing agreements and strategic partnerships to launch one of the largest maritime service companies for the oil and gas sector and maritime services in the region.