New Dubai Islamic Bank rights issueRoemarie Ann Periabras
New Dubai Islamic Bank rights issue
Dubai Financial Market (DFM) has announced that the rights issue of Dubai Islamic Bank is due to trade on the exchange between May 16-30 May as the bank embarks on a capital increase.
Trading of the rights issue enables existing shareholders of the bank who do not wish to subscribe to the new shares, which the bank plans to issue as part of its capital increase, to sell all or part of their rights to other investors who do wish to subscribe.
The opening price of the rights issue has been set at AED1.82 based on the company’s adjusted share price on the market minus the issuing price of the new shares.
The rights issue will be free-floated on its inaugural day only, while price movement will be in line with DFM’s fluctuation range of 15 percent up and 10 percent down from day two until the end of the trading period, DFM said in a statement.
It added that subscription to Dubai Islamic Bank’s new shares will take place from May 23 to June 6 to increase the capital to AED6.589 billion.
Source: Arabian Business