Shares of Shuaa Capital, a Dubai-based investment bank, were suspended from trading on the Dubai Financial Market today after the company failed to disclose information related to a convertible bond that the firm issued to Dubai Banking Group. Trading is suspended until the firm makes a disclosure regarding the convertible bond, which has not yet been converted, according to Zawya Dow Jones, the news service.
The Dubai Banking Group had pledged to take a 32 per cent equity stake in Shuaa Capital by converting Dh1.5 billion (US$272 million) worth of bonds issued by Shuaa last year into shares on Oct 31 this year. The conversion of the bonds was set at an agreed price of Dh6 per share equating to 250 million shares of Shuaa, and has been in talks since last June. This is not the investment bank's first run in with the regulators. In late September it was fined nearly Dh3.5 million (US$953,000) for manipulating the price of DP World's shares and then obstructing an investigation into the case.
Shuaa's spokesperson declined to comment. Representatives from Dubai Group were not immediately available to comment. The firm's shares closed at Dh2.7 on Thursday. shamdan@thenational.ae