The rights issue was oversubscribed with participation from the bank’s existing shareholders, underscoring the strength of the franchise.
Kuwait’s Burgan Bank has announced the successful completion of its rights issue, whereby the bank raised KWD 62.55 million of equity by issuing 240.58 million shares.
Majed Essa Al-Ajeel, the Chairman of Burgan Bank, said that the oversubscription reflects the shareholders’ confidence in the bank’s performance and its future prospects.
In a bourse filing, the lender stated that the rights issue represents a 10.6 per cent of increase in the issued share capital of the bank.
The net proceeds of the rights issue will be used to further strengthen the Bank’s capital position and for general corporate purposes.