SHUAA Capital Launches Two MCB Tranches Valued $118.43 Million

SHUAA Capital, the leading asset management and investment banking firm in the Middle East and the US, said that it has approved two Mandatory Convertible Bond (MCB) tranches by its Board of Directors, with a total value of up to $118.43 million.

This marks the final step in SHUAA’s capital optimisation journey, reinforcing its strategic focus on delivering value to shareholders. The issuance remains subject to approvals from shareholders and regulatory authorities, the company said in a regulatory filing with Dubai Financial Market (DFM) on Monday.

The first tranche, valued at up to $40.84 million, will be offered to existing shareholders through a private placement, with mandatory conversion into shares at $0.087 per share. The second tranche, valued at up to $75.01 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 per share conversion price reflects SHUAA’s strategic growth trajectory and its 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 optimisation efforts.

Opportunity for Shareholders

SHUAA Capital Chairman Badr Al-Olama said that this milestone reflects the strong foundation the company has built over the years and the MCB tranches represent an opportunity for shareholders and investors to participate in the next chapter of our growth story.

SHUAA Capital CEO Wafik ben Mansour said that the approval of the MCB tranches is a defining moment in SHUAA’s journey to unlock its full potential. The company is committed to completing this process in the next quarter and to delivering sustainable value to its shareholders, he said.

Upon completion of its capital optimisation 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.