SHUAA Capital Approves Two Mandatory Convertible Bond Tranches Totaling AED425.5 Million

SHUAA Capital's Board of Directors has approved two Mandatory Convertible Bond (MCB) tranches, totalling up to AED425.5 million. This decision is a significant step in SHUAA's capital optimisation strategy, aimed at enhancing shareholder value. The issuance awaits approval from shareholders and regulatory bodies.

The first tranche, worth up to AED150 million, will be available to existing shareholders via a private placement. It will convert into shares at AED0.32 per share. The second tranche, valued at up to AED275.5 million, targets holders of existing bonds from a SHUAA-related special-purpose entity under the same conversion terms.

Both tranches are set for conversion into equity soon after issuance, underscoring SHUAA's dedication to finalising this process swiftly. The conversion price of AED0.32 per share highlights SHUAA's strategic growth path and improved financial standing after a transformative year.

This pricing reflects the intrinsic value from SHUAA's strengthened balance sheet and its future business potential. It offers an appealing chance for investors interested in SHUAA's growth journey during this crucial period.

Ahmed Al Ahmadi has ended his role as Managing Director and Board Member, having significantly contributed to the company's capital optimisation initiatives. His departure marks a transition in leadership as SHUAA continues its strategic focus.

Badr Al-Olama, Chairman of SHUAA Capital, stated, "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."

Future Prospects and Market Leadership

Wafik ben Mansour, CEO of SHUAA Capital, remarked, "The approval of the MCB tranches is a defining moment in SHUAA's journey to unlock its full potential. We are committed to completing this process in the next quarter and to delivering sustainable value to our shareholders."

Following the completion of its capital optimisation plan, SHUAA aims to enter a new growth phase. This will further strengthen its leadership position in the MENA financial markets while creating increased value for its shareholders.

With inputs from WAM