Dubai-listed contractor Arabtec Holding has announced it is planning to raise AED1.5bn ($408m) from a rights issue, according to a company statement on the Dubai Financial Market (DFM).

Arabtec will also attempt to reduce its share capital through a pro-rata cancellation of shares, with the aim of wiping out accumulated losses to help it raise new equity.

Earlier this month, the company announced it had recorded a loss of $925m for 2016, greater than the $640m recorded in 2015.

Arabtec said in a company statement that this year’s losses were due to “impairment charges on high-risk items, recurring, non-recurring and operational expenses”.

The money raised from the rights issue will be used to fund the ongoing projects, support the management’s business plan and provide financial flexibility to pursue growth opportunities, the statement added