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The managing director of Dubai-listed Shuaa Capital's board of directors has stepped down after the investment bank reached the final stage of its debt restructuring process, approving $116 million mandatory convertible bonds in two tranches to new investors and bondholders of its existing expired bond.
Shuaa said late on Sunday night that Ahmed AlAhmadi has completed his tenure after playing “a meaningful role” in its capital optimisation.
AlAhmadi was appointed MD in April while already CEO of Al Baher Real Estate, which held close to 7% Shuaa’s shares, but sold to below a 5% in late November.
He previously served as a board member from November 2019 to November 2020, then returned in August 2023 to replace former largest individual shareholder, CEO and MD Jassim Alseddiqi.
The entity currently has one major shareholder, Direct Access Investment, which held 27.2% at market open on Monday.
The investment bank’s MCBs will convert to equity “as soon as practically possible” at a price of AED 0.32 ($0.09) per share.
Earlier this month, Shuaa also reached agreement with lenders including its senior creditor, the UAE’s largest lender, Abu Dhabi-listed FAB.
Shuaa’s losses spiralled in 2023 and its share price dipped to a record low of AED 0.11 in March as it battled with restructuring.
But as it reached the final phase on Friday, its share price rose by 4.7% to AED 0.25 and saw Dubai Financial Market’s highest volume and fifth highest value traded.
(Reporting by Imogen Lillywhite; editing by Brinda Darasha)
