Dubai’s Shuaa Investment Firm Moves Forward with Restructuring Through Convertible Bonds
Dubai-based Shuaa Investment, listed on the Dubai Financial Market (DFM), has reached a pivotal point in its restructuring process with the approval of two Mandatory Convertible Bond (MCB) tranches worth Dh425.5 million. This strategic move aims to strengthen the company’s financial foundation and provide greater clarity for shareholders, investors, and lenders.
Convertible Bond Issuance Details
The two tranches include a Dh150 million bond to be offered to existing shareholders through a private placement, priced at Dh0.32 per share for conversion into equity. The second tranche, valued at Dh275.5 million, will target holders of past bonds issued by a Shuaa-linked Special Purpose Entity. Both tranches will be converted into shares at the earliest opportunity following issuance, signaling Shuaa’s commitment to completing its restructuring promptly.
Shuaa’s Focus on Strengthening Operations
The bond issuance marks a major step towards stabilizing Shuaa’s financial position, allowing the company to focus on its operational recovery and growth. According to market analysts, this move is crucial for Shuaa to regain its strength and maintain a positive trajectory after a period of restructuring.
Stock Market Reaction
On the DFM, Shuaa’s stock opened at Dh0.24, reflecting a 4.5% increase from the previous trading day, showing investor optimism about the company’s future prospects.
Changes in Leadership
As part of the restructuring, Ahmed Al Ahmadi, Shuaa’s Managing Director, has stepped down from his role and will no longer serve on the Board of Directors.
Quotes from Leadership
Badr Al-Olama, Chairman of Shuaa, expressed confidence in the company’s future, saying, “The MCB tranches represent an opportunity for shareholders and investors to participate in the next chapter of our growth story.” Wafik Ben Mansour, CEO of Shuaa, added, “The approval of the MCB tranches is a defining moment in Shuaa’s journey to unlock its full potential, paving the way for growth and profitability.”
With the bond issuance, Shuaa Investment has successfully cleared a major hurdle in its restructuring efforts. As the company moves forward, it looks to solidify its financial base and pursue growth, ultimately creating long-term value for all stakeholders.
