Shuaa Capital halts trading

DUBAI - Shuaa Capital, a Dubai-based investment bank, yesterday suspended trading of its stocks on Dubai Financial Market (DFM) at 12.51pm after its share prices rallied to breach a 15 per cent one-day limit following a key change in its shareholding rule.

By Issac John, Deputy Business Editor

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Published: Wed 16 Jul 2008, 11:54 PM

Last updated: Sun 5 Apr 2015, 12:50 PM

Shuaa's shares went on steep rise - from Dh6.55 in the morning to hit Dh7.53 -yesterday on news that it has received approval from Emirates Securities and Commodities Authority (ESCA), UAE's stock market regulator, as well as the Ministry of Economy and the DFM to change its articles of association so that GCC nationals will be treated as UAE nationals "in relation to owning, dealing with and disposing of shares of the company." Under the existing rules, UAE nationals own upto 51 per cent stakes.

Before the amended article of association, GCC nationals were allowed to own 21 per cent of Shuaa stocks as the rest of the 49 per cent was earmarked for international investors, a Shuaa spokesperson told Khaleej Times.

Shuaa, the largest investment bank in the UAE by market share, has total assets under management of $2.7 billion.

The approval frees up 21 per cent of Shuaa Capital's shares to international investors with immediate effect, said Oliver Schutzmann, Head of Investor Relations at Shuaa Capital. "It comes in line with our goal to facilitate easy access to our shares and further diversify our shareholder base. The share rally was a clear proof of the major demand from international and GCC investors. Some international investors have been trying to buy our stock for over a year and couldn’t due to the foreign ownership limit."

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