Dubai – Mubasher: Emirates NBD said that the subscription period for eligible persons to subscribe for new shares has been successfully closed on 20 November 2019, with total funded commitments totalling over AED 18 billion, driven by strong demand from investors across the UAE, Middle East, and worldwide.
The new shares, which will be issued as per the bank’s rights issue to raise additional capital of AED 6.45 billion, had an oversubscription of approximately 2.8 times, said a press release on Thursday.
“We appreciate the excellent response from existing shareholders in our first rights issue and are pleased to enjoy their strong support, a vote of confidence in Emirates NBD’s financial position, and market standing. The positive response we have received will further strengthen our balance sheet and help progress milestones as we continue our growth journey and commitment to our shareholders,” said Emirates NBD’s chairman Sheikh Ahmed Bin Saeed Al Maktoum.
The overall demand from non-UAE investors recorded more than AED 11 billion, or 62.6% of the total funded commitments received from all investors on 20 November, owing to the bank’s foreign ownership limit which has increased to 20% from 5% recently.
It is worth mentioning that the net proceeds raised from Emirates NBD's rights issue will be utilised to bolster the bank’s capital base while boosting future business growth.
