Arabtec has concluded its AED2.4bn ($650m) rights issue, the Dubai-based developer announced on 8 July. It was 30 per cent oversubscribed.

The company initially planned to complete the issue on 23 June, but as the ending date approached it decided to extend the deadline to 4 July. The move indicated that shareholders had not been as enthusiastic in buying the additional shares as expected.

The offering was the first stage of a $1.75bn capital raising programming approved by shareholders in April. Most of the funds will go toward growth in its oil and gas, infrastructure and power business (55 per cent) and a quarter will go toward building affordable housing projects. The remaining 20 per cent will go into strengthening existing businesses and systems enhancements.

“As a result of the rights issue and progress to date, Arabtec’s market capitalisation has reached almost AED7bn. So far in 2013, the company has been awarded projects with a gross value of AED13bn across the Middle East, North Africa and Central Asia,” says Hasan Abdullah Ismaik, managing director and chief executive of Arabtec.

The company, which is majority-owned by Abu Dhabi-based Aabar Investments, is targeting a dividend payout of at least 10 per cent a year.