Arabtec shares surge 9.5%

Shares in Dubai-based Arabtec Holding surged 9.5 per cent on Monday as the construction major’s shareholders get ready to discuss a proposed 10 per cent cash dividend and a 30 per cent bonus share issue next week, according to media reports.

In addition, the firm denied media reports that it is withdrawing from its Ukrainian project due to political uncertainty in the country, pushing up its share prices on Dubai bourse by more than nine per cent.

The company said in a statement to the Dubai bourse, where it is listed, that work on the 463-metre high Gazprom tower project in St. Petersburg is on schedule for completion and there is no plan to withdraw from Ukraine. The contract was awarded in October 2012.

That news, coupled with speculation that the company will be announcing a hefty dividend payout on the back of healthy profits and a robust order book, pushed Arabtec shares up by 9.5 per cent to reach 52-week high on Monday, making it the largest gainer of the day on the Dubai bourse and pushing the DFM General Index up by 2.9 per cent.

Its share touched a high of Dh8 intra-day but closed a shade lower at Dh7.98. More than 95.3 million Arabtec shares changed hands worth Dh732.85 million.

“The project is well on its way as per the schedule agreed upon with Gazprom… the company aims to develop more partnerships and explore further opportunities in Russia,” the company spokesperson said in a statement to Dubai Financial Market.

The company had launched its Russian construction arm in 2012 following the signing of a contract with the Russian company Gazprom Neft for the development of Oktha Center, a 400-meter high-rise tower.

The skyscraper, which will house Gazprom’s headquarters, is expected to Europe’s highest tower upon completion.

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