Global Investment House "Global" announced today that it has concluded the capital increase for National Ranges Company KSCC “Mayadeen”. The transaction was oversubscribed as it attracted local and regional investors.
Global managed the transaction to increase Mayadeen’s capital to 100 million Kuwaiti Dinars (KD) which commenced on the 15th of November, 2006 and closed on December 13th, 2006. Global had succeeded in having the issue oversubscribed, where investors had subscribed to more than the offered 975 million shares during the set period.
Mr. Omar M. El-Quqa, Executive Vice President at Global, said, “The demand for the capital increase was excellent as was evident in closing on the scheduled date with subscriptions exceeding the targeted amount.”
He stressed that closing the transaction is an important achievement in the midst of rapid fluctuations in the financial regional markets, especially in this critical period and particularly in the Kuwaiti market, which is witnessing volatility.
He stated that Global was able to surpass the targeted amount, despite the bearish regional markets, which he attributed to many factors including the neutralization of some listed securities and the issue of stake disclosures.
“There was immense interest in the transaction, particularly from strategic investors who took note of the large real estate projects Mayadeen is set to execute, through its real estate subsidiary, immediately upon completion of the increase.”
As for the next stage in Mayadeen’s corporate expansion strategy, he stressed that it will be a continuation of the success witnessed by the company since its establishment in 1998, and that it will work aggressively to implement its new strategy and ambitious plans.
“The new phase will include firm steps to implement its strategy which aims to make Mayadeen one of the leading real estate companies in the region through investing in outstanding real estate projects with superior returns for the shareholders and investors.”
He also emphasized that Mayadeen has drawn long-term real estate regional investment plans to capitalize on the huge boom in the sector.
It is noteworthy that Mayadeen will begin operating its first investments through the ownership of specific real estate properties in Dubai and Abu Dhabi that achieve a balance between income-generating assets and the development of viable properties.
The new investments include two fully-leased luxurious buildings within the Emaar Business Park in Dubai. The company also secured a building in the Dubai Healthcare City (DHCC).
One of Mayadeen’s most significant projects is located in the Emirates’ capital, Abu Dhabi. It consists of development plots in a strategic location in the Shams Abu Dhabi development, within Al-Reem Island (Natural Island).
El-Quqa said that current and new shareholders could sell their shares on KSE immediately upon issuance of the shares, which shareholders will be notified of shortly.
He concluded by saying that Mayadeen also intends to use the acquired funds to expand its regional real estate investments to other countries such as Qatar and Saudi Arabia.
