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Dubai-listed Shuaa Capital (SHUAA) expects to begin its mandatory convertible bonds (MCB) offering by the first quarter of 2025, the investment bank said, as it narrowed Q3 2024 loss to 22 million dirhams ($6 million).
SHUAA, which has been on a debt restructuring mission lasting more than a year so far, will complete the offering for the $175 million MCBs next year.
It announced plans to issue the MCBs, which will convert to equity, earlier this year after negotiations with bondholders to extend its outstanding $150 million bond.
SHUAA expects to complete the MCB offering by Q1 2025 in line with the agreement with existing bondholders, and subject to market conditions and pending the necessary regulatory and shareholder approvals.
The investment bank’s losses narrowed quarter-on-quarter, after it reported an AED 29.5 million loss for Q2 2024 and year-on-year, with an AED 805 million loss for Q3 2023. Revenues were AED 18 million for Q3 2024 and AED 27 million for Q3 2023.
The company saw a net loss of AED 148 million for the first nine months of 2024, compared to AED 797 million net loss for the period in 2023.
Revenue for the first nine months of 2024 was AED 69 million and AED 128 million for 2023.
The accumulated losses of Dubai-listed entity, which is also the largest shareholder of Abu Dhabi Securities Exchange-listed Eshraq Investments, reached AED 965 million in Q3.
(Reporting by Imogen Lillywhite; editing by Brinda Darasha)
