Kuwait's Burgan Bank plans $74m rights issue

Kuwait's third-largest lender by assets says to launch rights issue by the end of 2014
Kuwait's Burgan Bank plans $74m rights issue
By Reuters
Sun 19 Oct 2014 04:40 PM

Burgan Bank, Kuwait's third-largest lender by assets, will launch a KD21.6 million ($74.8 million) rights issue by the end of 2014 pending regulatory approvals, it said in a bourse filing on Sunday.

Burgan said it plans to issue 216 million new shares and that the rights issue will raise its paid-up capital to KD197.18 million.

This would indicate that shares would be priced at 0.1 dinars in the rights issue, a significant discount to the 0.54 dinars the stock closed at on Thursday.

The shares will be available to existing shareholders on a proportional basis and any unsold shares will then be put on general sale, the bank said in the statement.

Kuwait Projects Company (KIPCO), which owns a 57.94 percent stake in Burgan, had said in September that it received approval from the country's central bank to increase its stake in the lender by 5 percent.

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