mushrif trading & contracting raises KD 10.7 million in first tranche of capital increase
Mushrif Trading & Contracting Co., KSCP [MTCC:KW], today announces that it has successfully increased its capital by KD 10.7 million. Following this placement, the company’s total paid up capital will reach KD 30.7 million.
On December 12, 2013, the company received approvals from The Ministry of Commerce and Industry for the capital increase, and on July 16, 2013, it received approval from the CMA to increase its authorized capital from KD 20 million to KD 40 million. The increase in capital was recommended by the Board of Directors to the General Assembly of Shareholders, who approved the increase.
The new funds will be utilized to reduce balance sheet debt, improve working capital ratios and support the creation of strategic partnerships where appropriate. With a stronger balance sheet, it is the management’s belief that the company will be able to compete for higher value work in its core market and hence grow its backlog substantially.
Commenting on the capital increase, Mr. Faisal Juma Khalfan Belhoul, chairman, said: “We are very pleased with the successful capital increase and the positive implications this has for our business and its strategy. The new funds will enable Mushrif to reduce its non-project related debt and hence strengthen its balance sheet considerably. This will enable Mushrif to continue focusing on its core market of Kuwait and seek other growth markets within the GCC. By optimizing our balance sheet structure through the increase in capital, we have placed the business in a strong position to create further shareholder value”.