190519 gulf navigation
The Dubai-based shipping company has been bolstered by new contracts as well as partial refinancing of some of its obligations. The share capital hike could provide more impetus. Image Credit: Supplied

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.