Dubai: The Dubai headquartered investment firm has firmly put to rest recent speculation that it was planning to de-list from DFM and turn itself back into a private entity. A statement has been issued to this effect on DFM, with Shuaa saying other measures to revitalize operations will continue.
"We would like to confirm that the company is in progress in its previously disclosed capital restructuring plan, and the Board will keep the shareholders informed about the developments by February 14, coinciding with the disclosure of the company's unaudited preliminary consolidated financial statements for the financial year ending December 31, 2023," the statement added.
Shuaa's stock was trading at a 52-week low of Dh0.177 on DFM - but since it put out the statement, it's gained an eye-popping 13 per cent as traded volumes hit 8.4 million.
The Board wishes to confirm that all such rumors (of seeking a delisting from DFM) are unfounded
Shuaa, which has its primary investment interests in real estate, technology and other sectors, had been delivering a soft set of financials in recent quarters. The period also saw the stepping down of influential shareholder Jassim Alseddiq from the role of managing Director. He also sold some of the stake he held in the company.
There was also the departure of Fawad Khan from the role of CEO, just under two years after he taken on the role.
Capital restructuring - that's the key
How soon Shuaa gets all the capital restructure plans in place will be key to medium-term prospects. Even then, "Shuaa’s commitment for a restructuring is another indicator for the buoyancy of the UAE capital markets and the confidence investors have in its turnaround plan," said Sameer Lakhani, Managing Director at Global Capital Partners. "Whilst there is a ways to go for implementation, the immediate market response indicates optimism and a statement of the resilience of the company."
In recent times, the likes of Deyaar and Gulf Navigation have turned around things, especially when addressing legacy issues, after effecting ambitious capital restructure programs.
