By Sam Bridge
Dubai Financial Market says rights issue of the emirate's largest bank is due to be traded between November 3-14
Dubai Financial Market (DFM) on Wednesday announced that the rights issue of Emirates NBD, the emirate's largest bank, is due to be traded between November 3-14.
Trading 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, DFM said in a statement.
The opening price of the rights issue has been set at AED3.56 based on the bank’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.
Subscription to Emirates NBD’s new shares will take place between November 10-20 to increase the capital to over AED6.3 billion through the issuance of 758.8 million shares with an issue price of AED8.5 per share.
A rights issue is a financial instrument representing the rights that are legally granted to the company's shareholders to have priority in subscribing to capital increase shares.
The rights are distributed among shareholders in proportion to the number of shares they own.
The statement said each shareholder will receive one right for every 7.3242 shares owned.