Dubai – Dubai Financial Market (DFM) has celebrated the successful issuance and listing of Emirates NBD’s new shares through a rights issue.
Emirates NBD's rights issue has seen high demand from local and global investors, affirming Emirates NBD's position as one of the leading local and regional banks and DFM’s role as an efficient fund-raising platform, said a press release on Sunday.
The issuance was oversubscribed by 2.8 times, attracting bids worth AED 18 billion, including AED 11 billion from foreign investors, or 62.6% of the total commitments.
The bell-ringing ceremony was attended by the vice chairman and managing director of Emirates NBD, Hesham Abdulla Al Qassim, and chairman of DFM, Essa Kazim, in addition to senior representatives from the two entities.
A total of 758.8 million new shares was issued by the bank with an issuance price of AED 8.5 per share in order to raise the capital to AED 6.316 billion.
The proceeds from the rights issue will be used in strengthening its capital base and supporting the future growth of its business.
Commenting on this, Al Qassim said, “The capital increase is a milestone in our continuous endeavour to strengthen Emirates NBD’s prominent position as a key player in the economic development of the UAE and beyond. Undoubtedly, the outstanding success of Emirates NBD’s Rights Issue underlines the confidence of local and international investors in the Bank’s business model and promising outlook.”
Moreover, Kazim added, “With this successful issuance, the total value of raised funds via DFM through its momentous journey reached AED 76 billion, a clear evidence on its vital role as an efficient fund-raising platform to finance growth strategies and support the economic development plans in the UAE.”
It is worthy to note that on 28 November, the new shares were added to investors’ accounts on DFM.
“Moreover, 72.5 million Rights were traded on the DFM between 3 and 14 November 2019, with a total value of AED 192 million during the Rights Issue process,” according to the press release.