Dubai-listed Islamic Arab Insurance Company (Salama) has pegged the final conversion price of the intended AED 175 million ($47.65 million) in Mandatory Convertible Sukuk (MCS) at AED 0.46 per share.
The conversion price is calculated by summing all outstanding shares once the capital reduction that the company is undergoing is completed, the Takaful provider clarified on Wednesday.
The shareholders of the companies agreed to an extensive capital restructuring plan that includes a reduction in capital to offset cumulative losses, and the issuance of MCS to increase capital later.
Once all the regulatory requirements are satisfied, the issuance of sukuk is anticipated to be executed through a special purpose vehicle.
The company had accumulated losses of AED 440.28 million that constituted 46.86 percent of the paid-up capital by September 30, 2025.
The losses have been charged to the litigation provisions, such as AED 288.47 million charged against assets associated with cases of litigation, AED 28.02 million charged against reinsurance losses, the depreciation of the Egyptian pound against the UAE dirham, and losses on investments.
