Drake & Scull International successfully closes its subscription for the new capital

• The capital increase represents the completion of the company’s restructuring plan
• The subscription exceeds one and a half times the minimum required to complete the restructuring process

 Dubai, United Arab Emirates- 13^th May 2024: The subscription process for the shares of Drake & Scull International PJSC, which began on April 25 and ended on May 10, has achieved a great success, as the proceeds of the increase in new capital exceeded AED 450 million, where the company was able to cover the minimum amount of targeted capital.

This milestone will certainly contribute to completing the restructuring process, as well as working on the growth of Drake & Scull International business and its ability to commit to implementing its future business plan and financing its new projects in all its operating sectors. Additionally, the company intends to use the net proceeds from the capital increase to enhance working capital and capital expenditures and support operations, as well as future growth and any potential acquisitions.

The company's new capital will amount to AED 2,887 million, distributed over 2,887 million shares. It is worth noting that subscription to the new capital was priced at an 25 fils per share (at a discount of 75 fils from the par value), and the discount will be recorded as a negative reserve in the balance sheet. The company's shares will resume trading on the Dubai Financial Market within the next few days after completing the procedures required by the regulatory and supervisory authorities.

Eng. Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International PJSC, praised the trust placed by the company’s shareholders who subscribed to its shares, to achieve the most important requirements for completing the restructuring process, which is to increase the capital in a record period of time.

Eng. Shafiq noted that the success of the IPO will enable the company to regain its position in the markets of UAE, GCC and other regions around the world. The road ahead of us is still long, but we are all determined to restore the solid position that Drake & Scull enjoys in the construction sector. The real estate market in the region, especially in the UAE, is witnessing remarkable growth.

The success of the IPO process will support Drake & Scull International's restructuring plan, which aims to rebuild confidence in it by focusing on its core strengths and strengths and what it specializes in.

Eng. Shafiq thanked the Securities and Commodities Authority and the Dubai Financial Market for their diligent follow-up of the restructuring process and their continued support. He also thanked all the company’s shareholders once again for their patience until the restructuring process was completed and for their active participation in covering the new capital.

It’s worth mentioning that the results of the restructuring plan, which stipulates writing off 90 percent of the liabilities of financial and trade creditors and issuing mandatory convertible bonds that will be converted into shares after 5 years in the value of the remaining 10 percent of the liabilities of financial and trade creditors, will appear through the upcoming financial results, and thus the company aspires to strengthen its portfolio, own projects, obtaining various new projects with a good profit margin, and completing the implementation of the current project portfolio, taking into account that “Drake & Scull” has a long history of experience in the field of electromechanical contracting, public health engineering, water and power contracting, general maintenance work, and project management. And facilities and provision of services related to onshore and offshore oil and gas fields.

During the past period, Drake & Scull also collaborated with several partners including Emirates NBD Capital which assumed the role of subscription lead manager, while Emirates NBD Bank assumed the role of the lead receiving bank, and Trussbridge Advisory as the capital raise financial advisor and “INP”- Ibrahim & Partners as legal advisor for the capital increase.

-END-

About Drake & Scull International PJSC (DSI):

Drake & Scull International PJSC (DSI) is a global industry leader delivering state-of-the-art projects and solutions across its high-performance sectors including electromechanical, integrated design, engineering, and construction, for water, power and oil and gas sectors. Through our operations, we provide integrated design, smooth functionality, and efficiency from start to finish. From Infrastructure Development, Waste to Energy, Data Centres Development, Mechanical Electrical and Plumbing (MEP) to Renewable Energy.Drake & Scull continues to be at the helm, driving the market forward through our people, passion, and innovation for more than 135 years.