Shuaa Capital’s board of directors has approved an increase in the company’s share capital after issuing mandatory convertible bonds (MCBs). This move aligns with the firm’s strategy to strengthen its financial position and capital structure.
The investment bank plans to issue 1.12 billion new shares, converting them at a fixed price of AED 0.32 ($0.087) per share. This initiative aims to enhance liquidity and support the company’s long-term growth.
Earlier this month, Shuaa Capital raised AED 359 million ($97.7 million) by issuing MCBs in two separate tranches. The company allocated AED 274 million to existing noteholders of its $150 million bond, which will mature at the end of March after two extensions. It also secured AED 85 million from new investors, demonstrating strong market confidence in its expansion strategy.
The MCBs will not carry interest, allowing Shuaa Capital to access funds without additional financing costs. Once converted into equity shares, these newly issued shares will remain under a mandatory lock-up period for 14 months, ensuring shareholder stability and long-term investor commitment.
