Dubai’s Drake & Scull gets regulator nod for capital cut

Dubai-listed Drake & Scull International (DSI) has obtained regulatory approval for its 75 percent capital reduction and subsequent listing of 500 million new shares, it said in a bourse statement on Wednesday.

DSI’s share capital will be cut from AED 2.28 billion to AED 571 million on Monday, Oct. 2.

The entitlement date, or the last day of trading before restatement, will be Sunday Oct. 1. 

The contractor also received the regulatory greenlight to issue 500 million shares to Tabarak Investment LLC, its largest shareholder.

The new shares will be listed on the Dubai Financial Market on Sunday, Oct. 1 after trading hours, after which the company’s share capital will increase from AED 571 million to AED 1.07 billion.

DSI has announced several new executive appointments in recent weeks, under a management shakeup as the contractor looks to restructure its business. 

The company has been hit hard in recent years by tough market conditions and a slowdown in the region’s construction sector, as governments reined in project and infrastructure spending amid low oil prices.