The subscription period will end on 10 October 2018.
Burgan Bank has announced that it is commencing its capital rights offering process to raise up to KWD 62.5 million of additional capital, reported local daily, Kuwait Times.
The net proceeds of the rights offering will be used to improve the bank’s capital adequacy ratio under the Basel III framework and leveraging its business model for general business purposes.
The bank said that the rights offering consists of the issuance of 241 million ordinary shares at an offer price of KWD 0.26 per share which includes a share premium of KWD 0.16. This represents an increase in the total number of issued shares from around 2,3 billion to 2,5 billion and an increase of 10.6 per cent in the existing issued share capital of the lender.
Majed Essa Al-Ajeel, Chairman of the board of Burgan Bank Group, said that it was the right moment to raise capital to enhance the bank’s capital levels and pursue our strong business pipeline with a focus on prudence and selective growth.