Sharjah Islamic Bank PJSC has approved, during its annual general assembly, a capital increase through a strategic rights issue, targeting total proceeds of up to AED 2.59 billion.
Purpose of the Rights Issue
The initiative aims to:
- Accelerate the bank’s organic growth.
- Deliver long-term intrinsic value to shareholders.
- Strengthen the bank’s capital base beyond regulatory requirements.
- Expand balance sheet growth and ensure sustainable returns.
Shareholders are offered the opportunity to subscribe to new shares, supporting the bank’s continued development and strategic objectives while addressing evolving regulatory requirements.
Details of the Rights Issue
- The rights issue will increase the issued share capital from AED 3,235,677,638 to up to AED 4,314,236,850.
- Up to 1,078,559,212 new shares will be issued.
- The issue price is set at AED 2.40 per share, comprising a nominal value of AED 1.00 and a premium of AED 1.40 per share.
Government Support
The Government of Sharjah, a major shareholder through Sharjah Asset Management Company and the Sharjah Social Security Fund, has expressed full support for the capital increase and confirmed its commitment to fully subscribe to its pro rata entitlement, demonstrating confidence in the bank’s strategic ambitions.
Use of Proceeds
Sharjah Islamic Bank intends to utilise the funds to:
- Strengthen its capital base beyond regulatory requirements.
- Expand its balance sheet growth.
- Ensure attractive returns for shareholders.
Leadership Statements
Abdulrahman Al Owais, Chairman of Sharjah Islamic Bank, said:
“This landmark announcement reflects our long-term commitment to our shareholders and the UAE investor community. We are pleased to offer our valued shareholders the opportunity to participate in our ongoing growth and success, while reinforcing our role as a key partner in the growth agenda of the government of Sharjah and the UAE leadership.”
Mohamed Abdalla, CEO of Sharjah Islamic Bank, added:
“This transaction represents a pivotal step for Sharjah Islamic Bank, enabling us to accelerate growth and deliver added value to our shareholders. We reaffirm our commitment to maintaining strong capital foundations and supporting the bank’s sustainable development.”
Advisors and Managers
- Emirates NBD Capital PJSC has been appointed as lead manager.
- Emirates NBD Bank PJSC will act as the lead receiving bank, alongside Sharjah Islamic Bank as a receiving bank.
