Emirates Investment Bank to seek shareholder approval to raise capital base to Dh1b

Dubai: Emirates Investment Bank (EIB) will be issuing a Dh650 million rights issue to push its issued capital to Dh1 billion from Dh350 million. This will be done through issuing 6.5 million shares at Dh100 apiece, and meant only for existing shareholders.

EIB will place this proposal to the general assembly after getting all required regulatory approvals. The Chairman and CEO will finalise the date for the general assembly, EIB added in a statement.

“The issued share capital of the bank is set at Dh1 billion distributed into 10 million shares with a nominal share price of Dh100 per share,” EIB said in a statement. “All the bank’s shares are currently of the same class, equal in rights and obligations.”

The Dubai-based private bank slipped into a net loss of Dh35.3 million for the first nine months of 2022, and that’s against a profit of Dh24.58 million for the same period a year before. It could be that the fourth quarter could provide better tidings for EIB.

Last year has been a solid one for banks in the UAE, with the leading names expanding the size of their books and helped along by higher interest rates. It has also been a period where some have ventured into key overseas markets through stake buys in financial institutions there.