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29 March 2024

DFM suspends trading in Arabtec shares to seek clarification

Published
By Vicky Kapur

Dubai Financial Market (DFM) has announced the suspension of trading in Arabtec shares this morning as the bourse seeks clarification from the company on media reports about a possible increased in stake by one of its major shareholders.

According to a Bloomberg News report citing unnamed sources, Aabar Investments, the second largest shareholder in Arabtec, is in talks to buy at least half the stake of the former chief executive Hassan Ismaik.

“Suspension of trading on ARTC shares awaiting clarification from the company on media reports about strategic partners’ stake as per Securities & Commodities Authority's instructions,” read a notice on the DFM site this morning as ARTC shares remain suspended in a largely flat market.

Shares in the Dubai-based construction major fell sharply in June on wild speculations and rumours about a sell-off by Aabar. Earlier this month, however, the shares began recovering after the firm responded to those rumours regarding the fate of the company in a media address.

Arabtec has been the focus of market analysts and players of late after its share price surged 261 per cent in less than five months, from Dh2.05 on December 31, 2013, to Dh7.40 on May 14, 2014.

However, the stock lost more than 61 per cent of its worth in the month of June, and closed the month at Dh2.61 apiece amidst less-than-transparent reports of layoffs and the fact that its major shareholder, Abu Dhabi-based Aabar Holdings, has liquidated part of its stake in the Dubai-based construction firm.

Hasan Ismaik, the CEO of Arabtec resigned last month after volatility in the company’s share prices. Ismaik became the first Jordanian billionaire to join the Forbes’ billionaire league after the businessman increased his stake in the publicly-traded Arabtec.