Ajman Bank to raise Dh419.6 million through rights issue

dubai - Share issuance will increase its issued share capital to Dh2.1 billion

Ajman Bank, which is listed on the Dubai Financial Market, on Tuesday announced that it would increase capital by issuing 419.67 million new shares through a rights issue, with each new share priced at Dh1.

The new share issuance by the Shariah-compliant bank, whose current capital stands at Dh1.68 billion, will increase its issued share capital to Dh2.1 billion.

On May 13, 2018, Ajman Bank's board of directors had authorised a capital increase through a rights issue.

The bank is increasing capital to undertake banking, financing and investing activities through various Islamic products such as murabaha, mudarba, musharaka, wakala, sukuk, istisnaá and ijarah.

Ajman Bank's first-half profits rose 43 per cent to Dh79 million as compared to Dh55.3 million for the same period last year as its impairment charges fell 35 per cent year on year to Dh53.5 million.

Subscription will run from October 17 to October 31. Ajman Bank's shares were trading at half a per cent down to Dh0.915 on Tuesday noon.

The lender has appointed Emirates NBD Capital as lead manager while Emirates NBD and Ajman Bank have been named receiving banks.

Shareholders will receive one share against four shares they hold on the eligible date of Sunday, October 7, 2018. Investors can trade in rights from October 10 to October 24.

- waheedabbas@khaleejtimes.com