The board of directors at Spanish-based contractor FCC has approved a capital increase of around €709.5 million by issuing over 118 million new shares for a unit price of €6 each.
FCC said its primary aim was to reinforce the company's capital structure and reduce the level of debt. Shareholders will hold preferential subscription rights to the new shares.
In August this year, the company appointed Carlos M Jarque as its new CEO, who replaced Juan Béjar. Jarque, from Mexico, took over less than a year after Mexican billionaire Carlos Slim took control of the group.
Core shareholders, Esther Koplowitz and Inversora Carso have said that they are committed to subscribing to the total number of shares that is proportional to them through their preferential subscription rights. Inversora Carso has also said it will subscribe to surplus shares in the event that, upon completion of the preferential subscription period and the additional allocation period, there are unsubscribed shares left over.