Ajman Bank Raises AED 675,000,000 through Rights Issue
Ajman Bank Successfully Raises AED 675,000,000 through a Rights Issue
Ajman Bank PJSC ('Bank') today confirmed that it has successfully raised AED 675,000,000 through a Rights Issue of which, AED 500,000,000 was raised against issuance of 500,000,000 new ordinary shares and AED 175,000,000 represented share premium. The Rights Issue was 195% over-subscribed. The proceeds of the Rights Issue will be used to strengthen the capital base of the Bank and to comply with the Central Bank capital adequacy requirements, to meet business needs of the Bank's customers and to generate cash flows. Further to the Rights Issue, the Bank's issued share capital was increased to become AED 1,623,500,000 (one billion and six hundred twenty three million and five hundred thousand Dirhams).
The Rights Issue, which was announced on 18April 2016, gave registered shareholders and other investors who purchased rights during the rights trading period, the opportunity to subscribe for new shares issued by the Bank at one Dirham and thirty five fils (1.35 AED) reflecting the nominal value of AED 1.00 per new share and a share premium of 35 fils. The trading of the rights on the Dubai Financial Market commenced on the 22 May 2016 and ended on the 5 June May 2016 with a total of 169 million Rights traded. Subscription for the new shares commenced on 30 May 2016 and closed on 12 June 2016.
Mr. Mohamed Amiri, Chief Executive Officer of Ajman Bank commented, 'The success of the Rights Issue reiterates the support we have from our shareholders and the confidence they have in the Bank. The Bank is now well positione.d to implement our growth plans and continue to deliver value to our shareholders. I would also like to thank our advisers for their help in successfully executing this Rights Issue.'
Emirates Financial Services (EFS) acted as the sole Book-runner of the Rights Issue, Emirates NBD acted as Lead Receiving Bank, and Al Tamimi & Company acted as the sole Rights Issue's counsel.
For further information, please contact Ajman Bank's Investors Relations Officer, Najib Ullah Abdul Rehman, on +971 6 7018646 or najib.r@AjmanBank.ae