Gulf Navigation Holding said on Tuesday it will sell new shares to existing investors in the first quarter to raise funds for expanding its business as the Dubai-based shipper targets a goal of increasing its revenues by 300 per cent by 2021.
The Dubai-listed company said it will increase the company's capital by Dh448.3 million to raise the company's total paid up capital to Dh1 billion, distributed over one billion shares at a par value of Dh1 a share.
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Gulf Navigation looks to issue $250mn sukuk for expansion
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"Since July 2016, when we launched our new strategy under the slogan "A broad vision to a new horizon" we continued day by day with the expansion and success we promised to our investors and shareholders and in a short time we have been able to accomplish strategic partnerships that contributed to the value of our shares by 500 per cent," said Khamis Buamim, group chief executive officer of Gulf Navigation.
"Today, we are ready to make a new move in our capabilities as we are willing to increase the size of our fleet by 20 vessels by 2020 in order to keep up with the growing demand to ship petroleum and petrochemical products regionally."
Mr Buamim added that GCC countries had earmarked more than US$140bn over the next decade to expand production of petroleum and petrochemical products and that he was confident that Gulf Navigation would win a large share of the growing demand for shipping.
Gulf Navigation in July hired First Abu Dhabi Bank to manage a US$250 million sukuk issuance as part of its expansion plan. The company said it was planning to sell the Islamic bond in stages to provide the company with continuous cash flow as it expands.
