Abu Dhabi – Mubasher: Invest Bank on Wednesday announced that it is looking to raise its capital in collaboration with the Sharjah government, which will invest up to AED 1.9 billion in the ailing lender.
The Emirati small bank will increase its issued capital and paid-up-capital to AED 3.18 billion through entering Sharjah’s government as a strategic shareholder, as the government will acquire around 50.07% of the bank’s total capital, according to a statement to the Abu Dhabi Securities Exchange (ADX).
The Sharjah government will buy 1.59 billion shares of Invest Bank for AED 1.15 billion.
The lender's issued capital will be raised through legal subscription to all shareholders, as the bank will issue shares with a nominal value of AED 1, the statement added.
The government of Sharjah will cover up to AED 785 million of the subscription that will take place before the end of December 2019.
The Sharjah government will also subscribe in full to the shares offered to it as part of a rights issue to be handled by Invest Bank in 2019, the ADX-listed lender noted.
