Dubai – Mubasher: Gulf Navigation Holding’s rights issue shares will begin trading on the Dubai Financial Market (DFM) next month.

The shares will be traded between 4 and 15 February, the DFM said in a statement released Tuesday.

“Trading of the rights issue enables existing shareholders of the company who do not wish to subscribe to the new shares, which the company plans to issue as part of its capital increase, to sell all or part of their rights to other investors who do wish to subscribe,” the bourse added.

The tradable rights issue shares will have a unique trading symbol (GULFNAV-RI) and will not be traded under Gulf Navigation’s normal trading symbol.

Subscription priority in the capital hike will be given “to the owners of the rights issue at the end of the clearing and settlement cycle for the trades of such rights,” the DFM added.

The opening price of the rights issue has been set at 3 fils based on the company’s adjusted share price on the market, while subtracting the issuing price of the new shares.

“The rights issue will be free-floated on its inaugural day only, while price movement will be in line with DFM’s fluctuation range of 15% up and 10% down from day two until the end of the trading period,” the bourse highlighted.

Through its capital hike, Gulf Navigation is looking to increase its capital to AED 1 billion through the issuance of 448.3 million shares at a par value of AED 1 per share.