Dubai Islamic Bank, the largest Islamic bank in the UAE, has announced a successful closing to its capital raising programme.
The issuance of 1.6 billion additional shares at price of AED3.11 per share was announced in April with the aim to boost the core capital of the bank by over AED5 billion ($1.36 billion).
The bank said in a statement that the transaction generated massive interest with subscriptions crossing AED14 billion. It added that the transaction is part of its plan to preemptively create capacity to support its growth plans.
“Growth remains on the horizon for DIB," said Dr Adnan Chilwan, Group CEO, DIB. “The last four years have seen us double our size and triple our profitability. More importantly perhaps is the fact that the bank’s financial position has become stronger than ever before with vastly improved asset quality and significantly more robust balance sheet that today offers even more opportunities to grow.
"The numbers speak for themselves with returns remaining at the highest end of the market which is obviously why investors continue to be attracted to the most liquid banking stock listed on the country’s exchange.”
He added that the capital boost will help maintain the bank's "competitive edge".