Dubai's Emirates NBD Plans $1.76bn Rights Share Sale

Emirates NBD last month raised the cap on foreign ownership holding in its shares to 20% from 5%

Dubai’s biggest bank is seeking to raise 6.45 billion dirhams ($1.76 billion) from a rights share offering as it expands abroad and courts more foreigners to its stock.
The state-controlled Emirates NBD plans to offer 758.8 million shares at 8.5 dirhams each, it said in a statement. That compares with its closing price of 13.15 dirhams on Oct. 16 and represents a discount of about 35%. The issue opens Nov. 10 and will close Nov. 20.
Emirates NBD last year proposed selling new shares to help fund the acquisition of Turkey’s Denizbank AS. The lender plans to use the proceeds of the sale to strengthen its capital base and support growth, according to Thursday’s statement.
Lenders in the six-nation Gulf Cooperation Council are trying to broaden the base of their investors as a combination of low oil prices, slowing economic growth and geopolitical upheavals drain inflows.
Emirates NBD last month raised the cap on foreign ownership holding in its shares to 20% from 5%, with plans to seek shareholders’ approval to double the new limit. It also raised $373 million from the sale of a stake in London-listed Network International Holdings Plc.
Citigroup Inc., Morgan Stanley and ENBD Capital are managing the rights share offering.
For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.Race For Private Markets Firms To Establish UAE Office Gets Hotter
EQT, Eurazeo, Pollen Street, Baron Capital and Silver Point – with collective AUM of over $700bn – expanding in Abu... Read more
Qatar Tax Authority Exempts $247m In Penalties For 4,000 Companies
Qatar announces success of tax penalty exemptions Read more
ADIA Reportedly Eyeing 30% Stake Acquisition In Aggreko
Bloomberg reports that KKR and CVC Capital Partners also interested in a deal that could value the Glasgow-based compan... Read more
Dubai Taxis Now Accept American Express Payments
The taxi companies included in the agreement are National Taxi, Arabia Taxi, Kabi Taxi, Dubai Taxi Corporation, and Met... Read more
Saudis ACWA Powers $1.9bn Rights Issue Approved By Shareholders
Company earmarks nearly $1.59bn for financing current and future projects and up to $380mn for mergers and acquisitions Read more
Abu Dhabi SME Champions Program Delivers $183m In Deals, Boosts Procurement Opportunities
Khalifa Fund’s SME Champions Program enabled 652 deals worth $183m by 2024, with registered companies nearly tripling... Read more