Sharjah Islamic Bank rights issue draws Dh8.3 billion in demand

Dubai: Sharjah Islamic Bank said its Dh2.59 billion rights issue attracted more than Dh8.3 billion in subscriptions, making the offering oversubscribed by more than 3.2 times despite volatile global market conditions.

The bank announced the completion of the capital raise after the subscription period closed on May 8.

SIB said the transaction would strengthen its capital position and support its long-term growth plans. The bank described the deal as the second-largest rights issue completed on the Abu Dhabi Securities Exchange over the past 20 years.

The Government of Sharjah, SIB’s largest shareholder, subscribed fully to its entitlement in the offering. Excluding the government’s participation, the remaining shares were oversubscribed by more than 4.5 times, according to the bank.

Foreign investors accounted for about 55% of overall demand, reflecting participation from international institutional investors alongside local and regional buyers.

Strong response

SIB said the strong response highlighted investor confidence in the bank’s financial position, growth strategy and long-term outlook, as well as continued confidence in the UAE banking sector and wider economy amid ongoing geopolitical tensions and global market uncertainty.

Abdulrahman Alowais, chairman of SIB, said the level of demand reflected investor confidence in the bank’s fundamentals and business model.

“The strong participation from local, regional and international investors also highlights the continued confidence in the resilience of the UAE economy and the stability of its financial and regulatory environment,” Alowais said.

Mohamed Abdalla, chief executive of SIB, said the capital raise would support the bank’s strategic priorities and future growth plans.

“The additional capital meaningfully strengthens our ability to execute on our strategic priorities, support our customers and communities, and invest in future-ready growth,” Abdalla said.

Emirates NBD Capital acted as lead manager for the transaction. Emirates NBD Bank served as lead receiving bank, while SIB acted as receiving bank for the offering.