Sharjah Islamic Bank launches strategic rights issue to raise Dhs2.59 billion

Sharjah Islamic Bank PJSC approved, during its annual general assembly held, a capital increase through a strategic rights issue aimed at raising total proceeds of up to Dhs2.59 billion.

This initiative marks a significant step in accelerating the bank’s strong organic growth and delivering long-term intrinsic value to shareholders.

The rights issue offers shareholders an opportunity to participate in the bank’s continued success by subscribing to new shares.

The move is designed to support the bank’s interests and those of its shareholders by enhancing its ability to achieve tangible asset growth, while proactively addressing evolving regulatory requirements and maintaining a consistent focus on strong and sustainable returns.

The proposed rights issue will increase the issued share capital of Sharjah Islamic Bank from Dhs3,235,677,638 to up to Dhs4,314,236,850, through the issuance of up to 1,078,559,212 new shares. The new shares will be offered at an issue price of Dhs2.40 per share, comprising a nominal value of Dhs1.00 and a premium of Dhs1.40 per share.

The government of Sharjah, a major shareholder in the bank through Sharjah Asset Management Company and the Sharjah Social Security Fund, has expressed full support for the capital increase. It has also confirmed its commitment to fully subscribe to its pro rata entitlement, demonstrating strong confidence in the bank’s future ambitions.

Sharjah Islamic Bank intends to utilise the net proceeds from the rights issue to strengthen its capital base beyond regulatory capital adequacy requirements, expand balance sheet growth, and ensure the continued delivery of attractive returns to shareholders.

“This landmark announcement reflects our long-term commitment to our shareholders and the UAE investor community," said Abdulrahman Al Owais, Chairman of Sharjah Islamic Bank. "We are pleased to offer our valued and loyal 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, Chief Executive Officer of Sharjah Islamic Bank, commented, “This landmark 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.”

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. 

WAM