SHUAA Capital has announced the approval of two Mandatory Convertible Bond (MCB) tranches by its Board of Directors, with a total value of up to $115 million (AED425.5 million).
This marks the final step in SHUAA’s capital optimization journey, reinforcing its strategic focus on delivering value to shareholders. The issuance remains subject to approvals from shareholders and regulatory authorities.
The first tranche, valued at up to $40 million (AED150 million), will be offered to existing shareholders through a private placement, with mandatory conversion into shares at $0.087 (AED0.32) per share. The second tranche, valued at up to $75 million (AED275.5 million), will be offered to holders of existing bonds issued by a SHUAA-related special-purpose entity under the same conversion terms.
Both tranches will be converted into equity at the earliest opportunity following issuance, reflecting the company’s commitment to completing this process promptly.
The $0.087 (AED0.32) per share conversion price reflects SHUAA’s strategic growth trajectory and enhanced financial position following a transformative year of progress.
This pricing aligns with the intrinsic value derived from the company’s strengthened balance sheet and the forward-looking potential of its business. It represents an attractive opportunity for investors seeking to participate in SHUAA’s growth story at a pivotal moment.
As part of SHUAA’s progression, Ahmed Al Ahmadi has concluded his tenure as Managing Director and Board Member. Ahmed played a meaningful role in advancing the company’s capital optimization efforts.
Badr Al-Olama, Chairman of SHUAA Capital, said that, “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.”
Wafik ben Mansour, CEO of SHUAA Capital, commented that, “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.”
Upon completion of its capital optimization plan, SHUAA will enter a new phase of growth, further solidifying its position as a leader in the MENA financial markets and creating enhanced value for its shareholders.
