ABK to offer 500m shares to raise capital by 26.7%

KUWAIT: Al-Ahli Bank of Kuwait (ABK) announced its readiness to initiate 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, i.e. three (3) trading days post the Cum Date on Monday, 21 August, 2023, in accordance with the standard T+3 settlement cycle. The subscription will begin on Sunday, 27 August, 2023, and 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).

ABK has appointed KAMCO Invest as the Lead Manager and Subscription Agent, and ABK Capital as the Joint Lead Manager and Subscription Agent.  The prospectus and additional information related to the offering and subscription process are now available on the websites of ABK and the subscription agents. 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.

On this occasion, Talal Behbehani, Chairman of ABK, said, “The capital increase will strengthen the Bank’s capital base and contribute to the development of our main business and activities, reinforcing our leading position in the Kuwaiti banking sector.”

Behbehani added, “The capital increase will also assist us in developing our operations and introducing new banking solutions and products. Furthermore, it will contribute towards financing upcoming development projects in Kuwait.” The Chairman anticipates a strong appetite for the subscription, especially given the high level of trust that the Bank enjoys from its existing investors, shareholders, and customers. He emphasized his active pursuit to continuously maximize shareholder value.

Behbehani commended the ongoing support that ABK receives from regulatory bodies, including the Central Bank of Kuwait, the Capital Markets Authority, Boursa Kuwait, and the Ministry of Commerce and Industry. The new shares to be offered represent 26.7 percent of the current paid-up capital, raising ABK’s share capital 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.

ABK achieved a net profit of KD 23.9 million at the end of the first half of 2023, representing a growth of 30 percent compared to KD 18.4 million during the first half of 2022. Meanwhile, Earnings per Share reached 11 fils, an increase of 38 percent compared to 8 fils during the same period of the previous year. This financial performance reflects the continuous improvement in key operational aspects, strong growth of its loan portfolio, a decrease in provisions and risks, a strong balance sheet, and stable liquidity levels that the ABK Group enjoys. Since its establishment in 1967, ABK has progressed to become one of the leading Kuwaiti banks in the region that offers a wide array of personal, corporate, and private banking products and services. ABK also provides a broad range of local, regional, and global investment solutions and services through its subsidiary, ABK Capital.

Across the region, the Bank offers individuals and corporates the convenience of comprehensive banking and financial services in the Egyptian market through ABK-Egypt’s network of 44 branches.

This is in addition to ABK’s three branches located in Dubai, Abu Dhabi, and Dubai International Financial Centre (DIFC) in the United Arab Emirates, servicing both Kuwaiti and Emirati individual and corporate clients.

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