The Dubai Financial Market (DFM) has announced the commencement of the rights issue for Ajman Bank, which will be available for trading on the exchange from July 17 to July 31, 2023. During the trading period, the rights issue will have its own trading symbol (AJMANB-Rl23). Shareholders will receive the right to subscribe for one new issued share for each 3.952 shares owned in Ajman Bank on the eligibility date. Each right allows the subscription of one new share at an issue price of Dh1.00 per share which is equivalent to the nominal value of the bank’s ordinary shares.
A rights issue is a financial instrument that grants the bank’s existing shareholders the right to subscribe for newly issued shares, as rights will be provided to existing shareholders at the close of trading on Friday, July 14 (the eligibility date). Existing shareholders of the bank who do not wish to subscribe to the new shares are also allowed to sell all or part of their rights on DFM. To be eligible to receive rights on the eligibility date, investors must maintain ownership of Ajman Bank shares or execute any purchase orders for shares no later than 3pm on Wednesday July 12, 2023. This timeframe allows for settlement of trades on the DFM.
The Rights Issue will be tradable only during the trading period, from Monday July 17, 2023, until Monday July 31, 2023. During this trading period, shareholders can choose to keep their rights to subscribe for new shares, keep portion of it or sell their rights through a DFM registered broker. If existing shareholders choose to not exercise their rights, their ownership in Ajman Bank would be diluted. Non-shareholders can also purchase Ajman Bank’s rights issue on DFM during the trading period. The holders of rights can subscribe for the new shares during the subscription period from Monday July 24 until Friday August 4, 2023.
Copyright © 2022 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).