UAE: Dubai Islamic Bank issues 1.6bn additional shares; raises $1.4bn

Source: Middle East Insurance Review | Jul 2018

Dubai Islamic Bank had a successful closing to its capital-raising programme with the issuance of 1.6bn additional shares priced at AED3.11 per share. The bank, which offers auto takaful products among others, had aimed to boost its core capital by over AED5bn ($1.4bn).

The transaction generated massive interest with subscriptions crossing AED14bn, said the bank in a statement. It added that the transaction is part of its plan to create capacity to support its growth plans.

“Growth remains on the horizon for the DIB,” said Dr Adnan Chilwan, group CEO of DIB. “The last four years have seen us double our size and triple our profitability. More importantly is the fact that the bank’s financial position has become stronger than ever before with vastly improved asset quality and significantly more robust balance sheet that today offers even more opportunities to grow.

“The numbers speak for themselves with returns remaining at the highest end of the market which is obviously why investors continue to be attracted to the most liquid banking stock listed on the country’s exchange.” M

AED1=$0.27

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