Shares of the Drake & Scull International on Wednesday slumped more than 9.4 per cent as investors continued to sell the stock after shareholders' proposal to raise capital through a convertible debt or selling new shares to a strategic partner were made public.
DSI stocks ended trading at Dh1.35, its lowest level in more than a year. The shares, which on Tuesday closed 9.7 per cent lower, have lost value in all four trading sessions this week, pushing the weekly losses to more than 22 per cent. It was the biggest decliner on Dubai Financial Market, whose benchmark index DFM has retreated less than 2 per cent for the period.
DSI earlier this week said that its shareholders at the annual general meeting proposed increasing the company’s capital by Dh500 million through the issuance of new shares with a minimum value of Dh1.25 per share to a strategic partner with the condition of a one-year trading ban.
The second option proposed was to raise the capital by issuing convertible bonds with value not exceeding Dh1 billion, the company said in an April 23 bourse filing. DSI board is meeting on Thursday to discuss the proposals tabled at the AGM, it said in a regulatory filing.
“The news is out that a new investor [is] potentially coming in at Dh1.25 a share and the retail investors are getting panicked. They are reading it [the minimum sale value of Dh1.25] as the actual value of the company shares,” Nabil Rantisi, the managing director of capital markets at Daman Investments, said. “The market is too thin and there are no buyers and this is what is reflecting in the DSI shares as well.”
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Ziad Makhzoumi, the advisor to the DSI board, on Wednesday said that the company is considering the sale of a convertible sukuk as a way of raising the company’s capital, in a CNBC Arabia interview.
DSI, which counts Saudi Araba as its core markets, aims to finish a Makkah project by the end of this year and will focus on getting more jobs in the energy sector, he said.
Mr Makhzoumi could not be reached for comment by The National.
DSI in the last week of March said it plans to issue a sukuk convertible into equity with a minimum value of Dh450m.
The Dubai-based contractor last month also appointed Fadi Feghali as its chief executive to fill the post that has remained vacant since August last year. The company in January said it expects to finalise restructuring of approximately Dh1bn of debt it raised for projects in Saudi Arabia by March-end. It has yet to conclude the deal, a company spokesman said on Wednesday.
DSI will begin negotiations with bondholders in the UAE to refinance Dh440m worth of sukuk in the second half of 2018. The Dubai contractor, which was hit hard by a slowdown in the Arabian Gulf economies, has already reached an agreement with a group of nine lenders to refinance Dh566m of corporate debt.
DSI said in February that its full-year net loss widened despite posting a profit in the fourth quarter of 2017.
The bio
Academics: Phd in strategic management in University of Wales
Number one caps: His best-seller caps are in shades of grey, blue, black and yellow
Reading: Is immersed in books on colours to understand more about the usage of different shades
Sport: Started playing polo two years ago. Helps him relax, plus he enjoys the speed and focus
Cars: Loves exotic cars and currently drives a Bentley Bentayga
Holiday: Favourite travel destinations are London and St Tropez
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
'Project Power'
Stars: Jamie Foxx, Joseph Gordon-Levitt, Dominique Fishback
Director: Henry Joost and Ariel Schulman
Rating: 3.5/5
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Employment lawyer Meriel Schindler of Withers Worldwide shares her tips on achieving equal pay
Do your homework
Make sure that you are being offered a fair salary. There is lots of industry data available, and you can always talk to people who have come out of the organisation. Where I see people coming a cropper is where they haven’t done their homework.
Don’t be afraid to negotiate
It’s quite standard to negotiate if you think an offer is on the low side. The job is unlikely to be withdrawn if you ask for money, and if that did happen I’d question whether you want to work for an employer who is so hypersensitive.
Know your worth
Women tend to be a bit more reticent to talk about their achievements. In my experience they need to have more confidence in their own abilities – men will big up what they’ve done to get a pay rise, and to compete women need to turn up the volume.
Work together
If you suspect men in your organisation are being paid more, look your boss in the eye and say, “I want you to assure me that I’m paid equivalent to my peers”. If you’re not getting a straight answer, talk to your peer group and consider taking direct action to fix inequality.
