Dubai: Burgan Bank, Kuwait’s third-largest lender by assets, has received regulatory approval to launch a 21.6 million dinar ($74.8 million) rights issue by the end of 2014, it said in a bourse filing on Thursday.
The lender said it plans to issue 216 million new shares and that the rights issue will raise its paid-up capital by 21.6 million dinars. The shares will be offered at 0.1 dinars per share, which is a significant discount to the 0.54 dinars the stock closed at on Wednesday. Burgan said it would announce details on the subscription period once the prospectus has been approved. Earlier in October, the bank said the new shares will be available to existing shareholders on a proportional basis and any unsold shares will then be put on general sale.
