Capital Optimisation Plan Reaches Final Stage
SHUAA Capital has announced the issuance of two Mandatory Convertible Bond (MCB) tranches, totaling AED 425.5 million ($115.9 million), as the final step in its capital optimisation strategy. The issuance aims to strengthen the company’s financial foundation and deliver sustainable value to shareholders.
Key Details of the Issuance
- Total Value: AED 425.5 million ($115.9 million).
- Tranches:
- First Tranche: AED 150 million ($40.8 million) offered via private placement to existing shareholders.
- Second Tranche: AED 275.5 million ($75.1 million) offered to holders of existing bonds issued by a SHUAA-related special purpose entity.
- Conversion Price: AED 0.32 per share, reflecting SHUAA’s enhanced financial position and growth potential.
- Timeline: Both tranches will convert into equity at the earliest opportunity.
The plan is subject to approval from shareholders and regulatory authorities.
Leadership Statements
CEO Wafik Ben Mansour described the announcement as a “defining moment,” stating:
“This marks the conclusion of a carefully executed plan to strengthen our financial foundation, paving the way for growth and profitability.”
Chairman Badr Al-Olama added:
“The MCB tranches represent an opportunity for shareholders and investors to participate in the next chapter of our growth story. The value we create will generate significant returns for all stakeholders.”
Additionally, Managing Director Ahmed Al Ahmadi stepped down as planned, after playing a pivotal role in advancing SHUAA’s capital optimisation efforts.
Strategic Milestones
In December, SHUAA successfully restructured AED 208 million ($56.65 million) in outstanding facilities with its senior creditor. This restructuring, alongside the MCB issuance, reflects SHUAA’s commitment to enhancing its financial health and long-term strategic goals.
About SHUAA Capital
SHUAA is a leading asset management and investment banking platform headquartered in Dubai. Over the years, it has established a strong foundation in the region, continually delivering value to shareholders and stakeholders through transformative initiatives and strategic growth plans.
The issuance of Mandatory Convertible Bonds marks a pivotal step in SHUAA’s journey to optimise its capital structure and drive future growth. With a solid financial foundation and strategic vision, the company is poised to deliver robust returns to its stakeholders in the coming years.
