Abu Dhabi's CBI seeks 50% capital increase

Commercial Bank International plans shareholder meeting next month to get approval for move

Commercial Bank International is listed in Abu Dhabi.

Commercial Bank International is listed in Abu Dhabi.

Abu Dhabi-listed Commercial Bank International (CBI) said on Thursday it would convene a shareholder meeting on February 20 to get approval for a 50 percent capital increase through a rights issue.

The lender, 40 percent-owned by Qatar National Bank, is aiming to raise AED1.1 billion ($299.5 million) through the issuance of 787.9 million shares at a price of 1.4 dirhams per share, CBI said in a bourse filing.

The price is a 36.1 percent discount to Thursday's closing price of 2.19 dirhams. Most rights issues in the Gulf are offered with substantial discounts.

The rights issue, which has received regulatory approval, will increase the bank's paid-up capital to AED2.36 billion, the statement added.

There was no reference in the statement regarding how many shares could be subscribed for through the rights issue, although it is likely to be pro rata.

The stake of Qatar National Bank, the Gulf's largest lender, is already the maximum which the United Arab Emirates will allow a foreign institution to own in a domestic bank.

Related:

Market Performance

Commercial Bank International
1.99
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed
sponsoredTracking