Dubai - Mubasher: Ajman Bank on Tuesday confirmed that it has successfully raised AED 675 million through a rights issue.
The issuance included the raising of AED 500 million was raised against issuance of 500 million new ordinary shares and AED 175 million represented share premium, the bank said in a statement.
The rights issue was 195% over-subscribed, with the proceeds to be used to strengthen Ajman Bank's capital base and to comply with the Central Bank of the UAE's capital adequacy requirements, to meet business needs of the bank’s customers and to generate cash flows.
Following the rights issue, issued share capital of Ajman Bank, listed on the Dubai Financial Market (DFM), was increased to AED 1.623 billion
The issuance announced on 18 April 2016 gave registered shareholders and other investors who purchased rights during the rights trading period, the opportunity to subscribe for new shares issued by the Bank at AED 1.35, reflecting the nominal value of AED 1.00 per new share and a share premium of 35 fils, the statement revealed.
Trading of the rights on the DFM began on 22 May 2016 and ended on the 5 June May 2016 with a total of 169 million rights traded. Subscription for the new shares commenced on 30 May 2016 and closed on 12 June 2016, the bank added.
“The success of the Rights Issue reiterates the support we have from our shareholders and the confidence they have in the Bank, [which] is now well positioned to implement our growth plans and continue to deliver value to our shareholders," commented Ajman Bank CEO Mohamed Amiri.
Emirates Financial Services (EFS) acted as the sole Book-runner of the Rights Issue, Emirates NBD acted as lead receiving bank, and Al Tamimi & Company acted as the sole Rights Issue’s counsel.
