Shuaa Capital unveils plans for rights issue to raise capital

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Dubai - Shuaa Capital recently announced its intention for a rights issue to increase the issued capital following the board’s initial approval, according to a bourse filing.

The rights issue will come ahead of a capital cut as well as an exchange offer to noteholders of Shuaa Capital’s bond maturing in October 2023, subject to approvals from shareholders and regulatory authorities.

Meanwhile, the company plans to complete the capital optimisation by the end of 2023, subject to securing the required approvals.

Shuaa Capital aims to optimise the capital to reposition itself for growth while bolstering its financial position and profitability, reducing debt, restoring balance sheet health, enabling future dividend payouts, and boosting free float to increase liquidity.

Shuaa Capital CEO, Fawad Tariq Khan, said: “Shuaa Capital remains fully dedicated to managing this process diligently, and we aim to work closely with various stakeholders to ensure the success of the capital increase.”

It is worth noting that the company appointed Houlihan Lokey and Baker Botts as financial and legal advisors, respectively.

During the first half (H1) of 2023, Shuaa Capital's financial performance improved by turning to net profits attributable to equity holders of AED 20.03 million compared to net losses of AED 164.30 million in the same period last year.