Latest news with #ShuaaCapital
Zawya
16-05-2025
- Business
- Zawya
Dubai's Shuaa Capital pivots to Q1 profit following restructuring
Dubai-listed Shuaa Capital PSC swung to a net profit of 196 million dirhams ($53 million) in Q1 2025 from a net loss of AED 94.73 million in the year-ago period following a period of restructuring and capital optimization. The financial and investment services company made a net loss of AED 161 million in the preceding quarter. Accumulated losses now stand at AED 932 million, 25.4% of capital. The losses stem from a host of factors, including investment impairment, receivables write-off, and valuation adjustments at its associate, Eshraq Investments. Revenue was lower at AED 25 million versus AED 30.2 million in Q1 2024. Cost to income ratio improved to 81% in Q1 2025, improving from 129% in the previous quarter. Shuaa Capital's restructuring and capital optimisation strategies included settlement with a major creditor to restructure AED 208 million in outstanding facilities, the conversion and issuance of mandatory convertible bonds (MCBs) totalling AED 274.4 million, which were converted into equity, impairment of legacy assets, and various cost-cutting measures. Meanwhile Abu Dhabi-listed Eshraq Investment posted net loss of AED27 million for Q1, narrowing from a net loss of AED 306 million in the year-ago period. Eshraq is seeking to terminate its management agreement with Shuaa GMC after concerns about the valuation of the Goldilocks Fund. The largest shareholder of Eshraq is Abu Dhabi Financial Group, which was combined with Dubai-listed Shuaa Capital in a reverse merger in 2019, and now holds 18.38% of Eshraq. (Writing by Brinda Darasha; editing by Seban Scaria)
Zawya
16-05-2025
- Business
- Zawya
Mideast Stocks: Saudi Arabia's stocks fall, most other Gulf markets flat
Dubai's main share index gained 0.42% and was poised to log gains for the sixth straight week, while Abu Dhabi's benchmark index rose 0.2% on Friday. Earlier this week, investor sentiment was boosted by a surge in optimism, driven by a U.S.-China trade breakthrough and a series of high-profile investment deals during U.S. President Donald Trump's Gulf visit. But by Thursday, the enthusiasm faded, with Asia-Pacific shares outside of Japan trading flat and European shares bracing for a subdued opening on the day. Oil prices, a catalyst for the Gulf's financial markets, continued their decline. Brent crude futures lost 18 cents after falling 2% on Thursday, pressured by oversupply concerns. As of Thursday's close, Saudi Arabia's benchmark stock index closed the week higher. In Dubai, on Friday, Shuaa Capital soared 8% after swinging to a net profit of 196 million ($53.4 million) in the first quarter from a 161 million-Dirham loss in the previous quarter. The investment banking platform was the top gainer on the index. ($1 = 3.6726 UAE dirham)
Zawya
06-05-2025
- Business
- Zawya
Former Shuaa Capital CEO joins Fasanara Capital to drive Middle East expansion
The former CEO of Dubai-listed Shuaa Capital has been appointed Middle East head of London-headquartered alternative investment manager Fasanara Capital as it seeks regional expansion. Fasanara, which registered an ADGM-based entity in March, and has $4.5 billion in fintech-focused assets under management, has recruited Fawad Tariq-Khan as its managing director, Middle East, based in Abu Dhabi. Tariq-Khan was Group CEO of Shuaa Capital, before leaving in 2024 and launching his own venture, Exnite, investing in Irish investment firm Quintas Capital, as well as founding AI company AgentPlex with a former Shuaa colleague. Fasanara CEO Francesco Filia said Tariq-Khan will help to drive Middle East expansion. The firm, which manages fintech-focused investment strategies on behalf of European and North American pension funds, has already carried out its first regional investment - a $60 million securitisation debt facility to Saudi crowdlending platform Forus. (Reporting by Imogen Lillywhite; editing by Daniel Luiz)
Zawya
28-03-2025
- Business
- Zawya
Dubai's Shuaa Capital's board approves capital hike after MCB issuance
The board of directors of Dubai-listed Shuaa Capital has approved the increase of the company's share capital following the issuance of mandatory convertible bonds (MCBs). The investment bank will issue 1.12 billion new shares at a conversion price of AED 0.32 ($0.087). Earlier this month, Shuaa Capital issued 359 million dirhams ($97.7 million) in two tranches – AED 274 million to existing noteholders of its $150 million bond, which expires at the end of March after two extensions, and AED 85 million to new investors. The MCBs will bear no interest and will convert into shares subject to a lock-up period of 14 months from conversion.
Zawya
25-03-2025
- Business
- Zawya
Eshraq attempts to end fund management agreement as valuation falls
Eshraq Investments is seeking to accelerate termination of its management agreement with Shuaa GMC after concerns about the valuation of the Goldilocks Fund. The Abu Dhabi-listed investor's board expressed concerns about changes to valuation methods leading to 497 million dirhams ($135 million) decrease in value of underlying assets in the fourth quarter of 2024 and has issued a legal letter seeking to accelerate termination of the agreement. The company reported widening losses in audited financial results for the full year 2024 of AED 679.4 million, growing from AED 545.1 million in 2023, which it said were due to asset valuation write-downs in the Goldilocks Fund, acquired in a share swap deal in 2022. The fund is managed by Shuaa GMC, the ADGM-regulated arm of Dubai-listed Shuaa Capital. The two entities operate separately with independent boards. In an interview with Zawya last year, Eshraq CEO Mohamed Al Sayed Al Hashimi implied the investor would seek to take the Goldilocks Fund under its own management, saying it did not make sense for a smaller investor to outsource the management of a large proportion of its balance sheet. Notes to audited financial statements for FY 2024 said the board was concerned the fund manager had failed to maintain consistency in methodology, resulting in 'significant unexplainable discrepancies' in reported net asset value. Eshraq has also commissioned legal and financial advisors to carry out a forensic review of management and valuation practices of the Goldilocks Fund, to be announced in due course. Its legal counsel has issued a letter to the fund manager to accelerate redemption of underlying investments and terminate the investment management agreement between Eshraq and the fund manager, the investor said. Eshraq's board is chaired by Fahad Al Qassim, who is also chair of Dubai-listed Islamic insurer Salama, of which the Goldilocks Fund holds 14%. The largest shareholder of Eshraq is Abu Dhabi Financial Group, which was combined with Dubai-listed Shuaa Capital in a reverse merger in 2019, and now holds 18.38% of Eshraq. A new significant investor, Inventive Investment Holding Limited, has increased its shareholding in Eshraq in recent weeks to 10.3%. Shuaa Capital's stake in Eshraq means it is impacted by the Abu Dhabi investor's losses. The fate of the two entities is also connected by the acquisition of the Goldilocks Fund by Eshraq from Shuaa, which took place before a significant shakeup, with the Shuaa GMC retaining management of the fund. Shuaa Capital has also recently undergone a year-long debt restructuring culminating in the issuance of mandatory convertible bonds (MCBs) with Eshraq Investments onboarded as one of three new investors. Prior to the shakeup and restructuring, Shuaa's largest individual shareholder during the Goldilocks acquisition was Jassim AlSeddiqi, who resigned as managing director and announced that he would sell his stake days after completion of the transaction. Seddiqi also stepped down from his role as chairman of Eshraq Investments in October 2023. Tensions appeared between Shuaa and Eshraq prior to the completion of the MCB issuance earlier this month, with Eshraq denying Shuaa statements that it had agreed to subscribe to the bonds. However, the investor later confirmed subscription following a Shuaa statement that it was in receipt of a binding and irrevocable commitment. (Reporting by Imogen Lillywhite; editing by Brinda Darasha)
