Sharjah Islamic Bank launches an offering to raise 2.59 billion dirhams

Sharjah Islamic Bank PJSC (“the Bank”) agreed, during the annual general assembly meeting, to increase the bank’s capital through a strategic offering of priority rights, aiming to raise a total proceeds of up to 2.59 billion dirhams. This initiative is considered a decisive step to enhance the speed of the bank’s strong internal growth and provide long-term intrinsic value to shareholders.

The rights issue gives shareholders a unique opportunity to participate in the bank’s continued success by subscribing to new shares.

This strategic initiative comes to serve the interests of the bank and its shareholders, by enhancing the ability to achieve tangible growth in assets while ensuring that proactive steps are taken to meet changing regulatory requirements, in conjunction with the bank’s continued focus on achieving strong and sustainable returns.

The proposed rights issue will increase the issued capital of Sharjah Islamic Bank from 3,235,677,638 dirhams to up to 4,314,236,850 dirhams through the issuance of up to 1,078,559,212 new shares. The new shares will be issued at an issue price of 2.40 dirhams per share, which reflects the nominal value of 1.00 dirhams per share. In addition to a share premium of 1.40 dirhams per share.

The Government of Sharjah, which owns a substantial stake in Sharjah Islamic Bank through the Sharjah Asset Management Company and the Sharjah Social Security Fund, expressed its full support for increasing the capital through the issuance of priority rights, and also confirmed its commitment, as a current shareholder, to fully subscribe to its relative share of the shares offered, which is a firm evidence of its support for the future ambitions of the bank.

The bank intends to use the net proceeds collected from the rights issue to strengthen the capital base to exceed regulatory capital adequacy requirements, expand the scope of growth of the bank’s balance sheet, and ensure the continuity of providing attractive returns to shareholders.

His Excellency Abdul Rahman Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank, said that this historic announcement is a testament to the bank’s long-term commitment to its shareholders and the investor community in the UAE, expressing his happiness at providing the bank’s shareholders with the opportunity to participate in its continued growth and success while confirming its role as an essential partner in the growth agenda of the Sharjah government and the country’s wise leadership.

For his part, His Excellency Mohammed Abdullah, CEO of Sharjah Islamic Bank, said that this historic deal is a pivotal step for the bank, as it enables it to accelerate the pace of growth and provide added value to its shareholders and confirms its continued commitment to maintaining strong capital foundations and supporting the bank’s sustainable development.

Emirates NBD Capital PJSC was appointed as the lead manager, Emirates NBD Bank PJSC was appointed as the lead receiving bank, and Sharjah Islamic Bank was appointed as the lead receiving bank.