Dubai – Mubasher: Gulf Navigation on Wednesday announced that it would continue with its sukuk issue worth AED 100 million in a bid to boost capital and support its vessel-acquisition plans.
The company had previously said it would launch a sukuk issue worth AED 100 million.
The issuance was originally 82% subscribed with approximately 367.543 million shares at AED 1 per share, bringing up the company’s paid up capital to 919.209 million shares from 551.666 million previously, it said in a statement on Wednesday.
Now Gulf Navigation seeks to launch an issuance for the remainder of its convertible sukuk in order to reach its planned capital required to meet the cash and liquidity requirements so as to implement its strategic plans including raising the number of its vessels to 20 by 2020.
Accordingly, Gulf Navigation has “proposed the issuance of the new Islamic Convertible Sukuk for a value of AED 100 million by way of private placement to Wahat Al Zaweya Investment & Real Estate Development at a conversion price of AED 1 per sak converted inot shares in the company,” it stated in its filing to the Dubai Financial Market (DFM).
In August, Gulf Navigation said it suffered AED 14.76 million in losses the first six months of 2018.
The losses, which stemmed from additional costs including $8 million paid in settlement of a legal dispute with a Chinese company, along with other expenses incurred for the upgrade of two petrochemical tankers, will not continue, the firm had said at the time.
In June, Gulf Navigation’s board approved issuing senior unsecured mandatory convertible sukuk worth AED 100 million.