The successful capital raise marks a significant milestone for SIB, representing the second-largest rights issue on the Abu Dhabi Securities Exchange (ADX) over the past 20 years. The bank intends to use the reinforced capital position to accelerate sustainable growth and drive long-term value for its shareholders.
Broad-based demand and international appeal
The rights issue saw participation from a diverse range of local, regional, and international investors. A key highlight of the demand was the strong interest from abroad, with foreign investors accounting for approximately 55% of the total subscription volume.
The Government of Sharjah, SIB’s majority shareholder, reaffirmed its commitment to the bank’s strategy by subscribing in full to its proportional entitlement. When excluding the government’s participation, the remaining shares were oversubscribed by more than 4.5 times by other shareholders and investors.
A validation of UAE economic resilience
According to the bank, the overwhelming demand reflects not only confidence in SIB’s financial fundamentals but also the perceived stability of the UAE’s broader banking sector and regulatory environment.
“Achieving this exceptional level of demand under the current global market environment reflects the strength of SIB’s fundamentals and the resilience of our business model,” said H.E. Abdulrahman Alowais, Chairman of SIB.
H.E. Mohamed Abdalla, CEO of SIB, added that the additional capital would provide a “future-ready” platform for growth. “The additional capital meaningfully strengthens our ability to execute on our strategic priorities, support our customers and communities, and invest in future-ready growth,” he stated.
Transaction details
The rights issue was managed by several key financial partners:
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Lead Manager: Emirates NBD Capital PSC.
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Lead Receiving Bank: Emirates NBD Bank PJSC.
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Receiving Bank: Sharjah Islamic Bank (SIB).
The completion of this transaction reinforces SIB’s standing among the UAE’s leading financial institutions and provides the necessary liquidity to capture future opportunities across priority growth segments.
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