Emirates NBD, Dubai’s largest bank, is planning a rights issue to raise up to 6.45 billion dirhams ($1.76 billion) as it eyes new expansions and aims to attract foreign investors.
The bank plans to offer 758.8 million shares at AED 8.5 each from November 10 until November 20, the state-owned lender said in a statement on Thursday.
“This represents a discount of 35.36 percent to the price of each of Emirates NBD’s shares on the Dubai Financial Market (DFM) at the close of business on 16 October 2019,” the bank said. The closing price on October 16 was AED 13.5.
The bank added that it has already received approval for the rights issue from the UAE Security and Commodities Authority, as well as the UAE Central Bank.
On September 2, Emirates NBD increased its foreign ownership limit from 5 percent to 20 percent and announced plans to increase it further to 40 percent in the future.