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.Dubai Chambers And EDB Join Forces To Unlock Growth Opportunities For SMEs
Dubai Chambers and Emirates Development Bank join forces to simplify banking, expand trade finance and support SME glob... Read more
US Federal Reserve Poised To Cut Rates As Gulf Economies Brace For Ripple Effects
Gulf investors brace for a near-certain US rate cut, with UAE borrowing costs set to fall and cash shifting into stocks... Read more
Money20/20 Middle East: Saudi Stock Market Value Surges To $2.67trn, CMA Chief Says
Saudi Arabia’s stock market approaching SR10tn ($2.67tn) in value as the CMA hosts Money20/20 Middle East Read more
HSBC Cashes In On Record HNWI Influx To UAE With Launch Of First Middle East Wealth Centre
HSBC has been expanding similar wealth hubs in China, Hong Kong, the UK, and more to serve clients who need multi-juris... Read more
Saudi Arabia Launches Google Pay
Saudi Central Bank launches Google Pay via mada, advancing Vision 2030 goals to boost digital payments, reduce cash rel... Read more
Next UAE Holiday Dates, Emirates ID Update, Dubai Tourism Boom And Real Estate Tax Analysis – 10 Things You Missed This Week
Catch up on the UAE’s biggest news this week — from new holidays and Emirates ID updates to Dubai tourism growth, r... Read more