UAE - Emirates NBD on Thursday announced that it is proposing to increase its issued share capital by an amount up to Dh758,823,529 from Dh5,557,774,724 to an amount not exceeding Dh6,316,598,253 by creating up to 758,823,529 new shares in its share capital in order to raise up to Dh6.45 billion - which includes a share premium of Dh7.50 per new share - by way of a rights issue.

Furthermore, Dubai's largest bank has published an invitation to its shareholders to subscribe for new shares. Frequently-asked questions relating to the rights issue will be made available on Emirates NBD's website (www.emiratesnbd.com) on or around today's date.

Hesham Abdulla Al Qassim, vice-chairman and managing director of Emirates NBD, said: "This milestone announcement is testament to our long-term commitment to our shareholders and the UAE investor community. We are pleased to offer our valued and loyal shareholders an exceptional opportunity to participate in our continued growth and success as we remain key partners to the growth agenda and vision of our nation's esteemed leadership."

The new shares will be issued at an issue price of Dh8.50 per new share, reflecting the nominal value of Dh1 per new share and a share premium of Dh7.50 per new share. This represents a discount of 35.36 per cent to the price of each of Emirates NBD shares on the Dubai Financial Market (DFM) at the close of business on October 16.

The new shares will rank pari passu - on equal footing - with Emirates NBD's existing shares including the right to receive all future dividends and other distributions declared, made or paid after October 31, 2019, including any dividends to be approved and paid in respect of Emirates NBD's financial year ending December 31, 2019.

The terms and launch of the rights issue were approved by the bank's board of directors on October 15, following the approval of the rights issue at Emirates NBD's general assembly meeting held on February 20 this year. The rights issue has also been approved by the UAE Security and Commodities Authority (SCA) and the Central Bank of the UAE.

Emirates NBD intends to use the net proceeds raised from the Rights Issue to strengthen its capital base and to support future growth of the business of Emirates NBD.

The bank increased its foreign ownership limit from 5 per cent to 20 per cent on September 2 and announced its intention to increase this to 40 per cent in the future, and will seek necessary approvals from its shareholder and the relevant regulatory authorities at the appropriate time.

The rights issue will be conducted through the issue of tradable securities pursuant to the decree of the SCA's chairman of the board, No. 11RM of 2016, to registered shareholders of Emirates NBD as at the close of business of the DFM on October 16 in the amount of one right for every eight shares held on such date. In order to receive rights on October 31, investors must ensure that they execute any purchase orders for shares at least two days prior to October 31, on or before 2:00pm (UAE time) on October 29, to allow for the settlement of trades on the DFM (which operates on a T+2 basis).

Shareholders of Emirates NBD will be entitled to trade their rights on the DFM, whether to sell some or all of their rights or to buy additional rights, commencing on November 3 and ending on November 14.

The holders of rights, which includes shareholders of Emirates NBD and any persons who purchased Rights during the rights trading period, will be entitled to exercise their rights to subscribe for new shares at the issue price commencing on November 10 and ending on November 20.

The new shares will be allocated to eligible persons on November 25. Refunds will be given to eligible persons who did not receive the number of new shares that they subscribed for, on or around November 30.

Emirates NBD Capital has been appointed as lead manager and bookrunner in respect of the rights issue. ENBD Capital, Citigroup Global Markets and Morgan Stanley & Co International are advising Emirates NBD regarding structuring, sizing and pricing. Emirates NBD has appointed itself as the sole receiving bank. Clifford Chance and Matouk Bassiouny & Ibrahim have been appointed as international legal adviser and UAE legal adviser, respectively.


 

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