Abu Dhabi – Mubasher: The Securities and Commodities Authority (SCA) has announced that it did not approve Eshraq Properties’ request to buy back 10% of its shares. This request is not in line with the market’s rules and regulations.

The Abu Dhabi-listed real estate firm had recently increased its capital as it had no cash surplus to finance its projects; this opposes the Company’s request to buy back some of its stocks owing to having a cash surplus, SCA revealed, adding that its decision is in line with Article no. 168, item no. 3, of the Federal Law no. 8 of 1984, and amendments thereto, concerning commercial companies.

SCA had recently approved a stock listing to increase Eshraq’s capital in accordance with market regulations. The capital increase, which amounted to AED 600 million, saw Eshraq raise its capital from AED 1.725 billion to AED 2.325 billion. AED 600 million were divided on 600 million shares at par value AED 1 per share.

Subscription for the capital increase had commenced on November 9 and ended on November 20. Meanwhile, the last day for the rights issue was Tuesday, October 28, 2014. The rights issue was for Eshraq’s shareholders listed as at the end of Thursday, October 30, 2014.



Photo Credit: Arabianeye-Reuters