Tuesday 12, June 2018 by Jessica Combes

DIB capital raising piques investor interest

 

The AED 5.1 billion rights issue attracts subscriptions exceeding AED 14 billion

The nearly three times subscribed issuance generates more than 50 per cent interest from foreign institutional investors Dubai Islamic Bank, the largest Islamic bank in the UAE announced a highly successful closing to the bank’s capital raising.

The issuance of 1.6 billion additional shares at price of AED 3.11 per share was announced earlier in April with the aim to boost the core capital (CET1) of the bank by over AED 5 billion. The transaction generated massive interest with subscriptions crossing AED 14 billion clearly denoting the huge interest from local and international investors in one of the fastest and most profitable banks in the region.

The transaction is part of the bank’s strategic agenda to pre-emptively create capacity to support its growth plans that have placed the institution amongst the top performers in the region.

“Growth remains on the horizon for DIB. The last four years have seen us double our size and triple our profitability. More importantly perhaps is the fact that the bank’s financial position has become stronger than ever before with vastly improved asset quality and significantly more robust balance sheet that today offers even more opportunities to grow. The numbers speak for themselves with returns remaining at the highest end of the market which is obviously why investors continue to be attracted to the most liquid banking stock listed on the country’s exchange,” said Dr. Adnan Chilwan, Group CEO, DIB.

He added that this is a strategic move for the bank, saying that the capital boost will help maintain its competitive edge whilst meeting regulatory requirements as it further progresses its growth ambitions in the medium term. “We are extremely grateful to all our shareholders for the tremendous support provided and we remain committed and focused on our growth plans aimed to enhance returns to the investor community in the years to come.”

Dubai Islamic Bank remains an iconic name in the global Islamic banking industry bestowed with a plethora of awards over the years for its efforts in the progression of the business model. Today the bank ranks fourth in the country in terms of size and third in terms of profitability.

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