Ajman Bank today confirmed that it raised Dh675 million through a rights issue of which Dh500 million was raised against issuance of 500 million new ordinary shares and Dh175 million represented share premium.
It said that the rights issue was 195% over-subscribed and that the proceeds 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 Dh1,623,500,000.
The rights issue, which was announced on 18th April 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 Dh1 per new share and a share premium of 35 fils, the bank said.
It added that the trading of the rights on the Dubai Financial Market commenced on the 22nd 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 30th May 2016 and closed on 12th June 2016.
Emirates Financial Services (EFS) acted as the sole Book-runner of the bank's rights issue, Emirates NBD acted as Lead Receiving Bank, and Al Tamimi and Company acted as the sole rights issue's counsel.