SHUAA Capital PSC: Capital Optimisation and Future Plans

SHUAA Capital PSC, a UAE-based asset management and investment banking company, is heading into the next phase of its capital optimisation plan. A key part of this plan is a rights issue, which is currently awaiting approval from shareholders and regulators. The company has successfully garnered the support of 93% of noteholders to extend the maturity of its $150 million bond until the first quarter of 2024. This move is a strategic one, aimed at optimising SHUAA's capital structure through decreasing and subsequently increasing its issued shares. The ultimate goal is to support growth, reduce debt, strengthen the balance sheet, and prepare for future dividend distributions. The past year has seen SHUAA strengthen its core operating business by hiring senior dealmakers and winning new mandates. The details of the company's rights issue will be disclosed at a future Shareholders’ General Assembly. Houlihan Lokey and Baker Botts are advising SHUAA on the recapitalisation. Despite a slight downturn in recent yields, the company's market cap remains strong at 661,822,920. It's also worth noting that the company is regulated as a financial investment company by the Emirates Securities and Commodities Authority, providing an additional layer of credibility and security for potential investors. Given the company's strategic moves to optimise its capital and strengthen its balance sheet, it appears to be positioning itself for future growth and stability. However, the future of the company is seen as neutral, indicating that while there are positive steps being taken, there are also challenges that need to be addressed.