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The board of directors of the Dubai-listed Shuaa Capital has approved the sizes of the two mandatory convertible bond tranches (MCB) it expects to issue as as part of its capital optimisation plan.
The bonds are to be issued in two tranches, one open to new investors with value of between 85 million dirhams ($23 million) and AED 150 million, and the second for noteholders of the entity’s expired bond, has been approved for a value up to AED 267.1 million.
The issuance has been set for on or before March 18, 2025, subject to approval by the Securities and Commodities Authority.
They will be issued through private placement and will convert to equity in the company after issuance at AED 0.32 per share. Shuaa’s share price is trading at AED 0.224 on Monday.
Last month, Shuaa said it has received binding commitments from three entities to subscribe to the tranche that is open to new subscribers. They are Abu Dhabi-listed Eshraq Investments, United Motors & Heavy Equipment Company LLC, which is part of Abu Dhabi conglomerate Darwish bin Ahmed & Sons Group, and Al Baher Real Estate Development Company LLC.
(Writing by Brinda Darasha; editing by Daniel Luiz)
