Subscription opens for ABK’s capital increase process

KUWAIT: Al-Ahli Bank of Kuwait (ABK) announced the commencement of the subscription process to its capital increase by offering 500 million shares at a value of KD 100 million, following the approvals obtained from regulating authorities. Through the capital increase, ABK aims to strengthen its capital base in line with the requirements of the Central …

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KUWAIT: Al-Ahli Bank of Kuwait (ABK) announced the commencement of the subscription process to its capital increase by offering 500 million shares at a value of KD 100 million, following the approvals obtained from regulating authorities. Through the capital increase, ABK aims to strengthen its capital base in line with the requirements of the Central Bank of Kuwait and the Basel III accord capital adequacy requirements. Proceeds from the capital increase will be used to continue to provide customers with exceptional banking services, while developing and enhancing the Bank’s operations in accordance with its corporate strategy.

The subscription will be available to shareholders registered in the Bank’s shareholder register as of the Record Date on Thursday, 24 August 2023, and holders of pre-emptive rights. Shareholders who wish to increase their entitled shares and non-shareholders who wish to participate in the capital increase may buypre-emption rights during the pre-emption rights trading period, which will begin on Sunday, 27 August 2023 and end on Sunday, 3 September 2023 (inclusive).

The subscription process will continue for 15 calendar days, until Sunday, 10 September 2023 (inclusive and ending at 1 pm), with a subscription price of 200 fils per share (which includes a nominal value of 100 fils and an issuance premium of 100 fils). The subscription process is led by KAMCO Invest as the Lead Manager and Subscription Agent, and ABK Capital as the Joint Lead Manager and Subscription Agent.

Eligible subscribers interested in subscribing to the capital increase may submit their subscription applications through Kuwait Clearing Company’s online subscription platform www.ipo.com.kw during the subscription period. The prospectus and additional information related to the offering and subscription process are now available on the websites of ABK and the subscription agents.

The new shares to be offered represent 26.7 percent of the current issued and paid-up capital, raising ABK’s share capital from KD 187.4 million to KD 237.4 million following the completion of the transaction. The capital increase will bolster the bank’s financial position, increasing shareholders’ equity by KD 100 million.

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