Dubai’s transport start-up Swvl announces $20mln private placement

Dubai’s transport start-up Swvl announces $20mln private placement

Swvl Holdings Corp., a Dubai-based ride sharing firm, said it has signed a definitive agreement with an US institutional investor for the purchase and sale of over 12 million of its ordinary shares along with securities for a combined value of around $20 million.

The series A warrants and series B warrants have been offered at a combined purchase price of $1.65 per share in accordance with the private placement, the Nasdaq-listed company said in a statement on Wednesday.

The warrants will each be exercisable immediately upon issuance, will expire five years from the date of issuance and two years from the date of issuance, respectively, it added.

Swvl operates a ride-hailing platform for private buses, similar to Uber's model for taxis. The transport start-up went public in April after merging with special purpose acquisition company (SPAC) Queen's Gambit Growth Capital, which valued Swvl about $1.2 billion.

“If, during their terms, all the warrants are exercised for cash, Swvl will receive an additional $30 million in gross proceeds based on the exercise price of $1.65 per share,” the statement said.

The private placement and sale of the securities is expected to occur by Friday, subject to conditions.

Alliance Global Partners is acting as the sole placement