Table of Contents
Introduction:
Learn about the ongoing rights issue for Ajman Bank in the Dubai Financial Market. Shareholders have the opportunity to subscribe to newly issued shares, while non-shareholders can invest in the bank’s future growth. Make informed decisions during the trading period from July 17 to July 31, 2023.
Overview:
- Dubai Financial Market (DFM) announces rights issue for Ajman Bank.
- Rights issue trading period: July 17 to July 31, 2023 (AJMANB-Rl23 symbol).
- Shareholders receive one new share for every 3.952 shares owned in Ajman Bank.
- Issue price: Dh1.00 per share, equivalent to the nominal value of the bank’s ordinary shares.
- Existing shareholders can sell their rights or subscribe for new shares.
- Non-shareholders can purchase Ajman Bank’s rights during the trading period.
- Subscription period for new shares: July 24 to August 4, 2023.
The Dubai Financial Market (DFM) has announced the commencement of the rights issue for Ajman Bank, which will be available for trading on the exchange from July 17 to July 31, 2023. During this trading period, the rights issue will have its own trading symbol (AJMANB-Rl23). Shareholders will receive the right to subscribe for one newly issued share for every 3.952 shares owned in Ajman Bank on the eligibility date. Each right allows the subscription of one new share at an issue price of Dh1.00 per share, which is equivalent to the nominal value of the bank’s ordinary shares.
A rights issue is a financial instrument that grants the bank’s existing shareholders the right to subscribe to newly issued shares. As rights will be provided to existing shareholders at the close of trading on Friday, July 14 (the eligibility date), shareholders who do not wish to subscribe to the new shares are also allowed to sell all or part of their rights on DFM. To be eligible to receive rights on the eligibility date, investors must maintain ownership of Ajman Bank shares or execute any purchase orders for shares no later than 3 pm on Wednesday, July 12, 2023. This timeframe allows for the settlement of trades on the DFM.
The Rights Issue will be tradable only during the trading period, from Monday, July 17, 2023, until Monday, July 31, 2023. Shareholders can choose to keep their rights to subscribe for new shares, keep a portion of it, or sell their rights through a DFM-registered broker. If existing shareholders choose not to exercise their rights, their ownership in Ajman Bank would be diluted. Non-shareholders can also purchase Ajman Bank’s rights issued on DFM during the trading period. The holders of rights can subscribe for the new shares during the subscription period from Monday, July 24, until Friday, August 4, 2023.
Overall, it is important for shareholders of Ajman Bank to take note of the rights issue trading period and eligibility date. By understanding the details of the rights issue, shareholders can make informed decisions on whether to exercise their rights, sell their rights, or purchase additional rights. The rights issue provides shareholders with an opportunity to increase their ownership in Ajman Bank and potentially benefit from the future growth and performance of the bank.
Furthermore, for non-shareholders, the rights issue presents an opportunity to invest in Ajman Bank and participate in the bank’s future growth. By purchasing the rights during the trading period, non-shareholders can potentially become shareholders and benefit from any future dividends or capital appreciation of Ajman Bank’s shares.
In conclusion, the rights issue for Ajman Bank is an important event for shareholders and investors. It allows existing shareholders to increase their ownership in the bank and provides non-shareholders with an opportunity to invest in Ajman Bank. By understanding the details of the rights issue and the trading period, shareholders and investors can make informed decisions that align with their investment goals and strategies.