Warba Bank announced that the offering period in capital increase for exercising pre-emption right starts today, Nov 25th and ends on 9th Dec 2018. The total shares’ value amounts KD 90MM (50 par value and 40 share premium); the subscription share price is 180 fils, including 100 fils par value and 80 fils share premium.
The Bank asserted that for the first time in Kuwait, an online subscription of 16,500 shares or less could be processed online. The payment could be made through the K-net electronic payment service by following simple steps on the URL http://www.ipo.com.kw, where subscribers will register their civil number/ commercial registration number, consequently the system will define their eligibility or ineligibility to the subscription. Then the subscriber will set the number of shares to be subscribed and pay the price amount through the electronic payment service.
Mr. Shaheen Hamad Alghanem, Warba Bank’s Chief Executive Officer, expected a strong turnout and heavy traffic for the share capital increase, in view of the huge amount of inquiries the Bank has received that is in addition to the deep confidence the Bank enjoys today amongst shareholders and customers, as well as the sustainable growth Warba Bank’s financing and investment’s portfolio is witnessing. ".
In the same context, the minimum subscription volume is one share with no maximum limit for the ownership of the Bank's shares except for those who want to own 5% or more of the Bank's shares who need to get a prior approval of the Central Bank of Kuwait. Following the end of the subscription period and the final allocation and completion of all necessary regulatory procedures, a shares’ receipt will be issued to be listed and traded on Boursa Kuwait (KSE) without any restriction. Warba Bank said that the non-shareholders subscription period starts on Dec 16 to 27, 2018.
Warba Bank has initiated this step of increasing its share capital based on indicators of its performance and strategy. The share capital increase aims at strengthening the Bank's capital base in line with Basel III requirements for capital adequacy and for the general objectives of the Bank, including engagement in strategic long-term investments and reinforcing the maximum exposure limit to a single obligor, which will provide more opportunities to increase the size of the Bank's financing portfolio, acquire new categories of customers, expand business operations and cross-selling opportunities; and increasing the maximum investment limit, which will positively enhance and lead to the growth of the investment portfolio. The Capital Increase will support investment in the long-term capital expenditures thus enhancing the Bank’s growth and ability to take part in mega financing projects to further support the national economy.