SIB launches strategic rights issue to raise gross proceeds of up to Dh2.59 bln

01/04/2026 04:08 AST

Sharjah Islamic Bank has approved to increase its capital through a strategic rights issue aimed at raising gross proceeds of up to Dh2.59 billion.

The proposed rights issue will increase SIB's issued capital from Dh3,235,677,638 up to Dh4,314,236,850 through the issuance of up to 1,078,559,212 new shares. The new shares will be issued at an issue price of Dh2.40 per new share, reflecting the nominal value of Dh1.00 per new share and a share premium of Dh1.40 per new share. This represents a discount of 37% to the closing share price of SIB's shares on the Abu Dhabi Securities Exchange as of 13 February 2026 (last trading day before the publication of the invitation to the AGM)

The rights issue is expected serve the interests of the Bank and its shareholders by enhancing capacity to achieve significant asset growth, whilst remaining ahead of evolving regulatory requirements as the Bank continues to focus on delivering strong and sustainable returns.

SIB intends to use the net proceeds raised from the rights issue to strengthen its capital base well-beyond regulatory capital adequacy requirements, extend runway for balance sheet growth and maintain attractive shareholders returns.

Abdulrahman Alowais, Chairman of SIB said: "This milestone announcement is testament to our long-term commitment to our shareholders and the UAE investor community. We are pleased to offer our valued and loyal shareholders the opportunity to participate in our continued growth and success as we remain key partners to the growth agenda of the emirate and nation's governments".

Mohamed Abdalla, CEO of SIB said: "This landmark transaction is a pivotal step for SIB, enabling us to accelerate growth and deliver enhanced value for our shareholders. We remain committed to maintaining strong capital foundations and supporting the sustainable development of the Bank."

Emirates NBD Capital PSC has been appointed as the Lead Manager. Emirates NBD Bank has been appointed as the Lead Receiving Bank and SIB as the Receiving Bank.

Khaleej Times