Bank Nizwa has received approvals from the Central Bank of Oman (CBO) and the Capital Market Authority (CMA) for a rights issue of RO75mn, the bank said in a disclosure to the Muscat Stock Exchange (MSX) on Wednesday.
‘Regulatory approvals from the CBO and the CMA has been obtained for the rights issue of 789.47mn shares at a price of 95bz per share, aggregating to RO75mn,’ Bank Nizwa said.
The bank said its board of directors has resolved that the record date of the rights issue shall be August 29, 2021.
Bank Nizwa, which is currently the fastest growing Islamic banking institution in Oman, announced in April that it would increase its capital by RO75mn this year to support the next phase of its growth.
“In line with the bank’s five years strategy up to 2025, to support the next phase of growth, and increase returns for the shareholders, the bank shall increase its capital by RO75mn, by way of a right issue in 2021,” Sheikh Khalid al Khalili, chairman of Bank Nizwa, had said in a statement issued in April.
The subscription for the rights issue will be open to the shareholders whose names appear in the bank’s shareholder register with the MCDC as on the record date (August 29).
Bank Nizwa said that persons who purchase the rights on the MSX within the rights trading period are also eligible to subscribe for the offer shares before the subscription closing date.
As per the bank’s disclosure, the rights trading period will be from September 5 until September 12. The subscription period for the rights issue will start on September 7 and close on September 16.
‘The rights representing ownership rights of shareholders to subscribe to the rights issue may be traded on the MSX during the rights trading period. A shareholder has the option to either subscribe to the rights issue or sell its rights entitlement on the MSX,’ Bank Nizwa said.
The eligibility to subscribe for offer shares shall lapse in case a shareholder neither subscribes to the rights issue nor sells his/her rights on the MSX during the rights trading period, the bank added.
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