Sharjah Islamic Bank (SIB) today announced the successful completion of its AED2.59 billion ($705.24 million) rights issue, which saw an oversubscription of 3.2 times.
Executed against an exceptionally challenging and volatile market backdrop, the transaction marks a decisive milestone for SIB, significantly strengthening its capital position and accelerating its capacity to deliver sustainable growth and long-term value creation for shareholders, the bank said.
The rights issue achieved exceptional demand, with the total subscriptions exceeding AED8.3 billion ($2.26 million). The strong participation from local, regional and international investors reflects the high level of confidence in SIBâs financial strength, growth strategy and long-term outlook, despite heightened global market volatility and ongoing geopolitical uncertainties affecting international financial markets, it said.
The transaction also underscores continued investor confidence in the resilience of the UAE economy, the strength and stability of the UAE banking sector, and the countryâs position as a leading regional and international financial hub.
The Government of Sharjah, SIBâs major shareholder, subscribed in full to its proportional entitlement, reaffirming its continued support for the Bank and confidence in its future strategy. Excluding the Governmentâs participation, the remaining shares were significantly oversubscribed more than 4.5 times by other investors and shareholders, demonstrating broad-based demand and strong market appetite for the Bankâs shares. Foreign investors represented around 55% of the overall demand, reinforcing SIBâs growth relevance to international investors and reflecting the strength of global participation in the rights issue.
This landmark transaction is the 2nd largest rights issue over the past 20 years on the Abu Dhabi Securities Exchange (ADX). It underscores SIBâs ability to execute at scale and further reinforces the Bankâs position among the UAEâs leading financial institutions, with a strengthened platform to capture future opportunities across priority growth segments.
Abdulrahman Alowais, Chairman of SIB, said: âWe sincerely thank our shareholders and investors for their overwhelming support and confidence in SIB through this landmark rights issue. Achieving this exceptional level of demand under the current global market environment reflects the strength of SIBâs fundamentals, the resilience of our business model and the trust investors place in our long-term strategy and disciplined execution.â
He added: âThe strong participation from local, regional and international investors also highlights the continued confidence in the resilience of the UAE economy and the stability of its financial and regulatory environment. The UAE continues to strengthen its position as an attractive destination for investment and sustainable economic growth. This successful capital raise further strengthens SIBâs capital base and enhances our ability to support future growth opportunities while continuing to create sustainable value for our shareholders, customers and the wider economy.â
Mohamed Abdalla, CEO of SIB, said: âThe successful completion of this rights issue is a defining achievement for SIB and a strong validation of investor confidence in our performance, discipline and direction, especially in a market environment where access to capital has been highly selective. The additional capital meaningfully strengthens our ability to execute on our strategic priorities, support our customers and communities, and invest in future-ready growth, while enhancing our capacity to deliver attractive, sustainable returns over the long term. We thank our shareholders, partners and advisers for their commitment in completing this transaction, and we express our sincere appreciation to Emirates NBD Capital for its invaluable support, strategic advice and marketing insights throughout the process.â
Emirates NBD Capital acted as Lead Manager. Emirates NBD Bank (ENBD) acted as the Lead Receiving Bank, with SIB acting as the Receiving Bank. â TradeArabia News Service
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