Today's Edition
SHUAA Capital announced today its intention to increase its issued share capital, through a Rights Issue following initial approval from the Board. The Rights Issue, will be immediately preceded by a capital reduction and exchange offer to note holders of its bond maturing in October 2023, subject to approvals from shareholders and relevant regulatory authorities.
The Company intends to use the capital optimisation, to reposition itself for growth with the following key objectives:
- Improvement and sustainability of profitability metrics befitting a leading financial services player.
- Significantly de-risk business through debt reduction and restore balance sheet health with appropriate and sustainable debt ratios.
- Position the company for future dividend distributions to shareholders unencumbered by elevated finance costs and debt service requirements.
- Enable participation from existing shareholders and new investors in SHUAA's growth story, while also increasing the free float of SHUAA's shareholding to increase liquidity.
SHUAA aims to complete the capital optimisation by the end of this year, conditional on obtaining the necessary regulatory and shareholder approvals. Full details will be made available as part of a Shareholders' General Assembly to be called in due course.
Houlihan Lokey is advising SHUAA regarding structuring, sizing, and pricing of the recapitalisation, and Baker Botts has been appointed as Legal Adviser.
