Drake & Scull International (DSI) announced, in a filing to the Dubai Financial Market (DFM) today, that its Board of Directors will meet on Monday, December 22, 2014, at the Company’s Dubai offices to tackle a request to buy back 10% of its share capital.

DSI’s stock saw a sharp drop on the market in the past few sessions to AED 0.655 by the end of Wednesday, recording a total 32% in losses during December.

The stock succeeded in making up for some of its losses during Thursday’s session, during which it rose by 11.8%, one and half hours after trading began. DSI’s share rose to the level of AED 0.732, cutting its losses to 24%.

Analysts told Mubasher in statements that they had expected companies, whose stocks have declined severely, to resort to requesting an approval to buy back their shares, should these companies have a cash surplus.

DSI recently announced that its subsidiary Drake & Scull Engineering (DSE) had been awarded an AED 82.5 million contract to execute a healthcare project in Abu Dhabi.

It is worth noting that an informed source at DSI had told Mubasher that the Gulf region accounts for 70% to 75% of DSI’s backlog worth AED 15.3 billion.

DSI’s capital amounts to AED 2.3 billion, divided on 2.3 billion shares at par value AED 1 per share.

Photo Credit: Arabianeye-Reuters