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Dubai-listed Shuaa Capital will raise $150 million via a rights issue after its former largest shareholder reduced his stake in the investment bank, according to a Bloomberg report.
Sources told Bloomberg that the Dubai Financial Market-listed entity is working with New York-listed Houlihan Lokey Inc to raise about $150 million via a rights issue after its former largest shareholder , Jassim AlSeddiqi, stepped down from his position in the company, selling 30 million shares, before reducing his share further to below 5% earlier this week
The unnamed sources said the funds will also be used to repay a bond due at the end of October, with Shuaa seeking consent from bondholders to extend the payment deadline for the debt, because the rights issue is unlikely to be completed before it matures.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
