PRESS RELEASE : BY SHUAA ON OCT 31, 2023
SHUAA Capital psc (DFM: SHUAA), the premier asset management and investment banking platform in the region, has announced a significant milestone in its capital optimization process. The company received overwhelming support from 93% of noteholders for the extension of the maturity date of its existing USD 150 million bond until the end of Q1 2024.
This decision follows an extraordinary meeting convened for Noteholders, signaling the first step in SHUAA’s strategic plan to optimize its capital structure and strengthen its financial position. The extension of the bond maturity date provides the company with additional time to execute its capital optimization plan effectively.
On October 9, 2023, SHUAA announced its Board’s approval to optimize its capital structure through a decrease and subsequent increase in its issued shares. The company aims to utilize this capital optimization to support sustainable profitability, reduce debt, enhance balance sheet strength, and position itself for future dividend distributions. Moreover, it seeks to attract existing and new investors to participate in its growth story while increasing free float to promote liquidity.
Over the past year, SHUAA has fortified its core operating business by recruiting senior dealmakers and securing new mandates successfully. The capital optimization initiatives are designed to establish a robust platform for growth, enabling the company to capitalize on market opportunities in the UAE and the wider region while leveraging its talent and expertise to serve clients effectively.
Further details regarding the company’s rights issue will be disclosed as part of a Shareholders’ General Assembly to be convened shortly.
Houlihan Lokey is advising SHUAA on structuring, sizing, and pricing the recapitalization, while Baker Botts has been appointed as Legal Adviser.
