Gulf Navigation looks to raise Dh100m through convertible sukuk
The move to privately place sukuk with a strategic investor is part of the company's capital increase drive
Gulf Navigation Holding, a Dubai-headquartered transport and shipping company, is looking to raise Dh100 million through the sale of convertible Sharia-compliant bonds as part of its capital increase drive.
The company will privately place the bond to Wahat Al Zaweya Investment & Real Estate Development company, it said in a statement to the Dubai Financial Market, where its shares are traded. The company did not say when it plans to execute the transaction or what the pricing of the deal, which will convert into company’s shares on maturity, will be.
The move follows the firm’s Dh448.33m rights issue in March, it said.
That issue was 82 per cent subscribed and the company only issued 367.54m new shares with face value of Dh1 per share, pushing Gulf Navigation's paid-up share capital from Dh551.66m to Dh919,2m. The authorised share capital of the company is Dh1 billion, it said.
The company swung to a loss in the second quarter of this year after payments to settle a legal dispute with a Chinese company and maintenance expenses for two vessels dented profitability.
The net loss of Dh19.7m in the three months ending June 30 compared with a profit of Dh10.2m in the same period last year. Operating revenue rose to Dh33.46m in the second quarter from Dh30.98m in the year earlier period. The company did not provide a total revenue figure at the time.
Updated: October 31, 2018 02:27 PM