Dubai-listed contractor Arabtec Holding has announced the completion of its share capital increase, with the new shares expected to be listed on the Dubai Financial Market (DFM) on 21 June.

The company said in a statement that it was able to increase its share capital from AED4.6bn ($1.25bn) to AED6.1bn, and intends to use the net proceeds from the rights issue to “fund [the] completion of ongoing projects, support the management’s business plan, and provide financial flexibility to pursue growth opportunities”.

The rights issue is still pending regulatory approval.

The rights offering was fully committed by Arabtec’s largest shareholder Aabar Investment. Shareholders who chose not to participate in the issue will be diluted up to 24.53 per cent.

The firm subsequently plans to reduce the capital through a pro-rata cancellation of shares to cut the entire accumulated losses on the balance sheet, which at the end of last year stood at an estimated AED4.6bn.

In May this year, the firm recorded its first quarterly profit since 2014 on the back of higher revenues.

Arabtec’s revenues climbed 11 per cent to AED2.2bn for the first quarter of 2017, from AED2bn reported a year earlier.