The rights are distributed amongst shareholders in proportion to the number of shares they own and shall be recorded in their accounts with brokerage or custody firms if the original shares were recorded in the shareholders’ accounts with them, whereas it shall be recorded in their accounts with clearing if the original shares were recorded with the clearing house.
The rights issue will be solely tradable during the above-mentioned timeframe with a distinct trading symbol (DIB-RI18), not the symbol of the main stock of the respective company. The priority right to subscribe for the capital increase shares shall be given to the owners of the rights issue at the end of the clearing and settlement cycle for the trades of such rights. The rights issue has a pre-set validity and inevitably loses its value if the owners do not subscribe to the capital increase shares.
The opening price of the rights issue has been set at AED 1.82 based on the company’s adjusted share price on the market minus the issuing price of the new shares. The rights issue will be free-floated on its inaugural day only, while price movement will be in line with DFM’s fluctuation range of 15% up and 10% down from day two until the end of the trading period. The rights issue is subject to all regulations of trading, clearing, settlement and commissions in effect in the market will be applicable to trades of the rights issue, which are not subject to mortgage, or to margin trading.
In order to reflect this capital increase, the DFM General Index as well as the Banking Sector Sub-index will be revised from the beginning of trading on May 10, 2018. The values of these indices will not be affected by the increase in the bank’s capital; however, the weightage of Dubai Islamic Bank’s share in the DFM General Index rose from 17.29% as of the last periodic review in January 2018 to 19.71% because of these adjustments.
It is noteworthy that subscription to Dubai Islamic Bank new shares will take place 23 may – 26 June 2018 to increase the capital to AED 6,589,585,179 through the issuance of 1,647,396,295 shares with an issue price of AED 3.11.