Arabtec to open rights issue on June 9

Dubai: Dubai-based contractor Arabtec, part-owned by Abu Dhabi state fund Aabar Investments, will begin subscription for a $650 million (Dh2.38 billion) rights issue on June 9, the UAE’s market regulator said on Thursday.

The company got regulatory approval to “start subscription in new capital shares,” according to a statement from the Securities and Commodities Authority (SCA). Arabtec had said in March that the fundraising was part of a five-year expansion plan, which could include a further capital increase of $650 million by the end of 2014 if needed.

Arabtec, builder of Dubai’s famous palm islands, replaced its chief executive earlier this year in a shake-up led by Aabar, its largest shareholder, which has been tightening its grip on the group.