SHUAA Capital PSC : delivers on next phase of capital optimisation plan

• 31 October 2023

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• Company receives support of 93% of noteholders to extend maturity of existing USD 150 million bond until the end of Q1 2024
• SHUAA moving forward with the next phase of its capital optimisation process and rights issue plans, subject to necessary approvals

SHUAA Capital psc (DFM: SHUAA), the leading asset management and investment banking platform in the region, announces today that it is moving forward with the next phase of its previously announced capital optimisation process and its plans for a rights issue to increase its capital, subject to shareholder and relevant regulatory approval.

SHUAA received support from 93% of noteholders of its USD 150 million outstanding bond issued by a group-owned special purpose vehicle ("Noteholders") who attended an extraordinary meeting convened for Noteholders to extend the maturity date of a bond maturing in October 2023 until 31 March 2024. This was the first step in developing the timeframe to successfully deliver SHUAA's capital optimisation plan previously communicated.

SHUAA announced on 9 October 2023 that it had received Board approval to optimise its capital structure through a decrease and subsequent increase in its issued shares. The company intends to use the capital optimisation to support growth through sustainable profitability, debt reduction and balance sheet strength, positioning the company for future dividend distributions and enabling participation in SHUAA's growth story from existing and new investors while also increasing the free float to promote liquidity.

Over the last 12 months, SHUAA has strengthened its core operating business both by hiring senior dealmakers as well as successfully winning new mandates. The capital optimisation plans are intended to create a platform for growth as the company seeks to capitalise on market opportunities in the UAE and wider region while leveraging its talent and expertise to service clients.

Full details on the company's rights issue 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.