UAE's Shuaa Capital to sell over 28mln treasury shares

Firm's board of directors back sale; CMA yet to issue approval

  
A general view shows the Dubai Financial Market after Joe Biden wins U.S. presidency, in Dubai, United Arab Emirates November 8, 2020.

A general view shows the Dubai Financial Market after Joe Biden wins U.S. presidency, in Dubai, United Arab Emirates November 8, 2020.

REUTERS/Christopher Pike

UAE’s publicly listed financial services firm Shuaa Capital is expected to divest more than 28 million treasury shares.

The company’s board of directors has just passed a resolution approving the sale of 28,107,748 shares, subject to the approval of the Securities and Commodities Authority (CMA), the company said in a bourse filing to the Dubai Financial Market (DFM) on Sunday.

No further details were disclosed regarding the sale.

The company earlier said it is expected to boost its financial results following a merger deal and listing of Anghami, a homegrown Arab music streaming platform, on Nasdaq. Shuaa had acted as the lead arranger and committed $30 million for the transaction.

It had a profitable year in 2020, when net profit went up by 166 percent to 125 million dirhams ($34 million) from 47 million dirhams in 2019.

Shuaa had been reducing its non-core assets to strengthen its balance sheet. It has just completed its 2020 funding plan by issuing $150 million bond, the first high-yield bond issuance in the Middle East and North Africa (MENA) region since the COVID-19 pandemic.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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© ZAWYA 2021

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