UAE shipping firm Gulf Navigation goes in for share capital increase to Dh1.27b
Gulf Navigation is using capital hike as 'first stage' of debt restructure
Dubai: The DFM-listed shipping company Gulf Navigation is going through a capital increase – the first step in a plan that will lead to the restructure of its existing debts and Sukuk. The capital increase activation data is Thursday (September 29).
This will see the equity capital rise to Dh1.27 billion from Dh1.01 billion, which works out to a 25.14 per cent increase. But this will not mean any change in the stock price, which is currently at 30 fils.
Gulf Navigation has passed through choppy waters in the recent past, running into losses brought on by the pandemic’s disruption of global supply chains in 2021 and through into 2021. In between, there was also the loss of a vessel at sea.
“The capital increase is in proportion to the number of subscribed Mandatory Convertible Bonds,” the company said in a statement.