SHUAA urges Dubai Financial Market to issue 515 million new shares

As per the media reports, an approval from the concerned authorities has been won by SHUAA Capital, the GCC's leading financial services institution, which has also urged the Dubai Financial Market to issue 515 million new shares to Dubai Banking Group.

The recent development has come to scene after the agreement regarding the convertible bonds issued by SHUAA to Dubai Banking Group. Under the agreement, Dubai Banking Group will convert the AED 1,500 million convertible notes into 515 million shares, representing a 48.4 per cent stake of SHUAA Capital's share capital.

Due to this, an increase by AED 515 million to AED 1,065 million would be seen in SHUAA's issued and paid up capital. However, there will be no change in the total shareholders' equity at AED 2.16 billion, which was the same in the second quarter 2009 financial statements.

It won't be wrong to say that a conversion price of AED 2.91 per share is represented by the new agreement, equal to a premium of 93%, to the closing share price of SHUAA of AED 1.51 on 27 August 2009.

"The foregoing terms are within the authority conferred by SHUAA's shareholders in their extraordinary general meeting held in Dubai on 15 April 2009," said a source.