Dubai: Dubai Islamic Bank (DIB) has said it is seeking shareholder approval for a plan to raise Dh1.647 billion on the Dubai Finacial Market by issuing additional shares.

Shareholders will have a right to buy one share for every three shares held and will have a nominal value of Dh1, and the rights may be at a discount to market price, the bank said a statement posted on the Dubai Financial Market. Dubai Islamic Bank shares closed 0.62 per cent higher at Dh6.53.

“The basis of determining the rights issuance price [is] to be discussed and approved and the AGM to authorise the bank’s board of directors to take all necessary actions to determine the amount, timing and details of the capital increase...,” the bank said in a statement.

After the rights issue, the paid-up capital will increase to Dh6.58 billion from the present Dh4.94 billion.

The AGM will also pass a special resolution to authorise the board to issue a sukuk of not exceeding $5 billion. The shareholders will also discuss and approve the cash dividend distribution of 45 fils per share or Dh2.219 billion for last year. The agenda will be discussed at the annual general meeting on February 21.