Shuaa Capital plans to sell non-core assets in the second half as the biggest shareholder of the Dubai-based bank implements a turnaround plan.
The company is seeking to raise more than Dh100 million by selling investments in a private equity fund and water infrastructure services company, said the general manager Fawad Tariq Khan in Dubai. Shuaa also aims to expand its capital markets business and cut costs after Abu Dhabi Financial Group bought a 48.36 per cent stake last November.
"We are exiting a part of Shuaa's proprietary investments, a lot of which is a legacy from even before the financial crisis," Mr Khan said. Money raised from the sales will be reinvested into the business and it also wants to increase investments in real-estate projects in the United Arab Emirates, he said.
Shuaa last week posted net income of Dh12.1m for the second quarter, its second straight quarterly profit after six quarters of losses, according to data compiled by Bloomberg. Earnings were helped by a 81 per cent decline in provisions at its loan business. Shuaa will announce a new dividend policy "soon", Mr Khan said. The company has not paid a dividend since 2008, according to data compiled by Bloomberg.
Shuaa gained as much as 3.2 per cent and was up 0.8 per cent at Dh1.25 at 10:53am in Dubai. The shares have dropped about 16 per cent this year compared with a 1.8 per cent gain in the exchange's benchmark index.
Shuaa has about six advisory mandates for real estate, financial services and transport firms, which are planning to raise about US$250m each, Mr Khan said. These companies are looking raising funds either through a private placement or an initial public offering, he said.
The company plans to increase assets under management to about Dh5 billionby the end of the year, up from Dh3.3bn currently, Mr Khan said. It plans to expand its investment banking and asset management businesses in Saudi Arabia, and will announce "some high-level hires soon", he said.
