Last year, the lender proposed selling new shares to help fund the acquisition of Turkey’s Denizbank.
Thursday 17, October 2019 BY KUDAKWASHE MUZORIWA
Dubai-based Emirates NBD is seeking to raise AED 6.45 billion from a rights share offering as it expands abroad and courts more foreigners to its stock.
Emirates NBD stated that the state-controlled bank plans to offer 758.8 million shares at AED 8.5 each and the issue opens on 10 November and will close on 20 November 2019.
The bank plans to use the proceeds of the sale to strengthen its capital base and support growth.
Lenders across the GCC are trying to broaden the base of their investors as a combination of low oil prices, slowing economic growth and geopolitical upheavals drain inflows.
Additionally, Emirates NBD last month raised the cap on foreign ownership holding in its shares to 20 per cent from five per cent with plans to seek shareholders’ approval to double the new limit.
The lender also raised GBP 305 million ($373 million) from the sale of a stake in London-listed Network International Holdings.
Citigroup, Morgan Stanley and ENBD Capital are managing the rights share offering.