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Dubai-listed Islamic Arab Insurance Company (Salama) has fixed the final conversion price for the planned AED 175 million ($47.65 millon) in Mandatory Convertible Sukuk (MCS) at AED 0.46 per share.
The conversion price has been calculated based on the total number of shares outstanding after the completion of the capital reduction the company is currently undertaking, the Takaful provider clarified on Wednesday.
Last October, the firm’s shareholders approved a comprehensive capital restructuring plan, which includes a capital reduction to offset accumulated losses, and the issuance of MCS to subsequently boost capital.
The sukuk issuance is expected to proceed through a special purpose vehicle once all regulatory conditions are met.
As of September 30, 2025, the company’s accumulated losses reached more than AED 440.28 million, representing 46.86% of the paid-up capital.
The losses have been attributed to litigation provisions, including the AED 288.47 million taken against assets linked to legal cases; AED 28.02 million in reinsurance losses; the devaluation of the Egyptian pound against the UAE dirham; and investment losses.
(Writing by Cleofe Maceda; editing by Seban Scaria)
