Arabtec shares surge following Dh353m contract award to build UAE Expo Pavillion
Second contract win announced since completion of rDh1.5 billion rights issue
Arabtec Holding, one of the biggest listed construction companies in the UAE, said it been awarded a Dh353 million contract to build the country's pavilion at Dubai’s Expo 2020 site, sending its shares soaring.
The announcement, follows the award of another contract to the firm this week. Arabtec is on a rebound after a capital restructuring programme aimed at rebuilding a battered balance sheet.
Arabtec Construction, a wholly owned subsidiary of Arabtec, announced the award of the contract by the Abu Dhabi National Media Council in a regulatory filing to the Dubai Financial Market.
“The UAE pavilion project marks yet another achievement on our roadmap to a sustainable and successful future,” said the Arabtec group chief executive Hamish Tyrwhitt.
“It highlights our strategic focus on the UAE as our core market and also demonstrates our commitment to building our future through the development of social infrastructure in addition to instilling a performance based culture within our organisation”.
The firm’s shares surged on the news, closing up 10.6 per cent at a two-month high of Dh3.23.
The pavilion, designed by Spanish architect Santiago Calatrava, is set on an area of 15,000 square metres, with a built-up area 19,200 sq metres. Inspired by the shape of a falcon in flight, the complex will comprise a 2,000 sq metres upper floor and a 662 sq metres mezzanine, with a plaza level and related facilities spread across 3,000 square metres.
Construction on the pavilion is scheduled to begin this month, with completion scheduled towards the end of 2019.
The announcement of the Expo contract comes the day after Arabtec announced a Dh113m deal for its subsidiary Emirates Falcon Electromechanical Co (Efeco) for a mechanical, electrical and plumbing (MEP) project, forming part of the Dubai Creek Harbour Development.
Efeco will undertake MEP work for two 37- floor residential towers, commencing work this month, with the project forecast to last about 22 months.
Arabtec announced the completion of a Dh1.5 billion rights issue on June 28, effectively underwritten by Abu Dhabi-based Aabar Investments, which holds a 36.11 per cent stake in the company.
The company says that the money will be used to help it finish projects, support the management’s turnaround plan and to provide it with the finances to pursue growth opportunities.
Updated: July 4, 2017 08:21 PM