CEO Wafik Ben Mansour called it a “defining moment in SHUAA’s journey to unlock its full potential” after the company informed the Dubai Financial Market (DFM) that its board of directors has approved two Mandatory Convertible Bond (MCB) tranches with a total value of up to AED 425.5 million ($115.9 million) as the final step of its capital optimisation plan.
The issuance remains subject to approvals from shareholders and regulatory authorities, and the company said it reinforces “its strategic focus on delivering value to shareholders.”
Also, as part of the progression plan, Ahmed AI Ahmadi stepped down as Managing Director and Board Member after playing a crucial role in advancing the company’s capital optimisation efforts.
Ben Mansour added: “This marks the conclusion of a carefully executed plan to strengthen our financial foundation, paving the way for growth and profitability.
“We are committed to completing this process in the next quarter and to delivering sustainable value to our shareholders.”
SHUAA capital raise
The first tranche, valued at up to AED 150 million ($40.8 million), will be offered to existing shareholders through a private placement, with mandatory conversion into shares at AED 0.32 per share.
The second tranche, valued at up to AED 275.5 million ($75.1 million), will be offered to holders of existing bonds issued by an SHUAA-related special purpose entity, under the same conversion terms.
The company said both tranches will be converted into equity at the earliest opportunity.
The AED 0.32 conversion price reflects SHUAA’s strategic growth trajectory and its enhanced financial position following a transformative year. “This pricing aligns with the intrinsic value derived from the company’s strengthened balance sheet and the forward-looking potential of its business,” added the statement.
Badr AI-OIama, Chairman of SHUAA CapitaI, commented: “This milestone reflects the strong foundation SHUAA has built over the years. The MCB tranches represent an opportunity for shareholders and investors to participate in the next chapter of our growth story.
“I am confident that as SHUAA continues to grow and execute its strategy, the value we create will generate significant returns for aII stakeholders. I would also like to personally thank Ahmed AI Ahmadi for his dedication and valuable contributions during a critical phase for SHUAA, which have been instruments in bringing us to this milestone.”
A leading asset management and investment banking platform, SHUAA had told DFM on 20 December this year that it had successfully agreed with its senior creditor to restructure AED 208 million ($56.65 million) in outstanding facilities.
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