Could someone explain the relation between issuing shares to Dubai Banking Group and the ensuing limit up? The press release this morning indicates that shareholder equity is to remain the same even though the new shares are valued at AED 2.91. Does that mean more shares will be available or
For the ignorants (like me) please . _________________ If this sounds stupid, maybe that is why I am small fry !
I haven't seen the press release about the Shuaa Capital (SHUAA) share issue yet but if total shareholder's equity is to remain the same, then that might mean that par value of each share will be reduced.
The AED 2.91 probably refers to the value of each share that is issued to DBG, which is not the same as par value (I think originally DBG were getting shares at about AED 6.50 each).
Share prices going limit up is not unusual on news about new share issues, no matter what the effect on shareholders. It might just indicate a sigh of relief that the issue is finally resolved without Shuaa going bust or being taken over. _________________ UAE IPO list | posting guidelines
The news about reaching an agreement between Shuaa and DBG is more than one month old, and the share pice responded with 3 days of limit up at the time
Since then the share price dropped a bit (to allow for some more accumulation ), the the same news re-announced ..Only difference the agreement now is executed...Then the share is limit up again
Reminds me with Aabar press coverage of the old news that sent the shares from 2 to 2.6 in 3 days
SHUAA Capital issues 515 million shares to Dubai Banking Group
SHUAA Capital (SHUAA), the GCC's leading financial services institution, today announced that it has received approval from the concerned authorities and has requested the Dubai Financial Market to issue 515 million new shares to Dubai Banking Group.
This follows the agreement regarding the convertible bonds issued by SHUAA to Dubai Banking Group, whereby 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, ShUAA said in a press release today.
As a result, SHUAA's issued and paid up capital will be increased by AED 515 million to AED 1,065 million. Total shareholders' equity will remain unchanged at AED 2.16 billion as reported in the second quarter 2009 financial statements.
The new agreement represents a conversion price of AED 2.91 per share, 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.
WAM/TF
The SHUAA Capital Board of Directors announced on Sunday the appointment of Sameer Al Ansari as the new Chief Executive Officer with effect from 1 September 2009. Al Ansari replaces Iyad Duwaji who resigned as CEO this month.
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please .
), the the same news re-announced ..Only difference the agreement now is executed...Then the share is limit up again
