Shuaa Capital, listed on the Dubai Financial Market, announced yesterday its intention to increase the issued capital through a rights issue following the initial approval of the Board of Directors.
The priority rights will be issued immediately after the capital reduction and exchange offer to holders of bonds due in October 2023, subject to obtaining the necessary approvals from the company’s shareholders and relevant regulatory authorities.
The company intends to take advantage of the capital enhancement to re-establish its position in order to achieve growth within the framework of key objectives that include improving and sustaining profitability metrics in line with the company’s leading position in the field of financial services, and significantly reducing business risks through debt reduction and restoring the strength of the balance sheet with debt ratios. Suitable and sustainable.
The objectives also include enhancing the company’s performance to allow it to distribute future profits to shareholders without being burdened by high financing costs and debt service requirements, and enabling current shareholders and new investors to participate in Shuaa’s growth process, while increasing the percentage of free trading of the company’s shares and thus increasing liquidity. .
Shuaa Capital aims to complete the capital enhancement process by the end of this year, subject to obtaining the necessary approvals from regulatory authorities and shareholders, and full details will be announced during the shareholders’ general assembly meeting.
It is noteworthy that Shuaa chose Houlihan Lokey to provide consultations regarding organizing, determining the size and pricing of the capital restructuring process, and Baker Botts was chosen to be a legal advisor.
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