The Board of Directors of the Gulf Navigation Holding (PJSC) has approved the trading of the rights issued last February to the company’s existing shareholders, without publicly offering the remaining shares.
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, considering its future expansion plans. The company's capital now stands at AED 919,209,250.
Gulf Navigation Holding announced a maximum of AED 488 million in capital increase through trading of the rights issue from 11 February to 1 March 2018 with a total value of AED 367,542,584. The company’s capital after increase is AED 919,209,250 distributed to 919,209,250 shares at a nominal value of AED 1 per share. The UAE nationals have contributed to 95 per cent of the shares, GCC citizens to two per cent, and other nationalities to three per cent.
Gulf Navigation decided to settle for what key shareholders have covered because the company has a stage-based operational plan and is gradually increasing its assets and resources. The company's current revenues have been growing significantly thanks to the wise procedures taken by the new management that have led the company to make profits and grow its assets.
HE Khamis Juma Buamim, Board Member and MD & Group CEO of Gulf Navigation Holding Group said that since the company started executing its strategic plan in mid-2016, it has achieved steady progress in revenues, encouraging major investors to increase their shares in the company through trading rights issue, which has been conducted successfully.
"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. I am very grateful to all those who participated in the rights issue, especially Tabarak Investment, who expressed their great confidence in Gulf Navigation and its strategic plan. We promise our shareholders to be always up to their trust. Based on the directives of the Board of Directors, the company will continue its expansion and increase its assets," added Buamim.
Key achievements of the company's new strategic plan include a full company restructure; settlement of all prior 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. The company has also developed and expanded its services and business including the geographical area of its business, adding two petrochemical carriers to its assets, and refinancing of the petrochemicals carriers. It also succeeded in enhancing its business portfolio and entering into negotiations to acquire new vessels and large shares in regional and international companies to diversify its sources of income and business.