Drake & Scull International PJSC rose the most since December after the Dubai-based engineering contractor said Gulf Cooperation Council investors could own 100 percent of its shares.
The shares rose 11 percent to 80.7 fils, the highest close since May 20. About 70 million shares traded, almost six times the three-month daily average. It was the biggest percentage gainer on Dubai’s benchmark DFM General Index, which slipped 0.1 percent to 4,088.82.
GCC ownership of shares in Drake & Scull was previously capped at 49 percent, according to a stock exchange filing. The switch is effective today, it said. United Arab Emirates nationals currently own about 51 percent, while investors in the region hold less than 6 percent, according to data on the exchange website.
“It’s a move designed to cement their partnerships with investors in markets they operate in,” Ahmed Shehada, the head of advisory and institutions at NBAD Securities LLC, said by phone. “There’s a lot of local retail-investor interest on the back this news. The play on Drake & Scull is on its future projects and what it would mean for the company if strategic GCC investors bought in.”