Dubai-based investment bank Shuaa Capital will use a rights issue to ‘extinguish losses’ and repay its upcoming bond maturity according to a bourse filing today, following the exit of its largest shareholder.

Last month, Shuaa’s former Managing Director Jassim Alseddiqi had sold 30 million of his shares through a special deal. Bloomberg on Friday reported that Shuaa Capital’s rights issue will be to the tune of around $150 million.

The Dubai-listed entity confirmed in bourse filings today it is to increase share capital through a rights issue, having received board approval, and said the move would enable participation from existing and new investors.

The rights issue is still subject to shareholder and regulatory approval, but the investment bank confirmed that it was working with Houlihan Lokey to advise regarding structuring, sizing, and pricing of the recapitalisation, and that Baker Botts has been appointed as legal adviser.

(Writing by Imogen Lillywhite; editing by Seban Scaria)