Kuwait International Bank completes $536m capital hike
KUWAIT CITY, June 21, 2023
Kuwait International Bank (KIB), a leading Shariah-compliant bank in the country, has announced the successful completion of the subscription process for a capital hike through offer of 428.6 million shares at a value of KD60 million in a rights issue, which was oversubscribed by 687%.
KIB said the capital increase comes in line with its strategy to achieve further development and growth.
Following the completion of the capital increase, the bank’s paid-up capital increased by 34.98% to reach KD165.4 million ($536 million) which strengthens the bank's financial position.
The top Kuwaiti bank said it will use the proceeds of the capital increase to support its regulatory capital ratios and support its growth plans.
In addition, the proceeds will be additional investments in developing its digital infrastructure to provide digital banking services of high quality.
The rights issue period ran from May 30 until June 13. Kamco Investment Company (Kamco Invest) managed the offering in their capacity as the Issuance Advisor and Subscription Agent, and Meysan Partners were appointed by the Bank as the Legal Advisors.
The subscription process was fully automated whereby applications were submitted through Kuwait Clearing Company, the clearing and depository agent.
Vice Chairman and CEO Raed Jawad Bukhamseen expressed delight at the high level of shareholder participation and oversubscription of the offering, which is "reflective of our shareholders’ commitment to the Bank and investors’ confidence in the strategy adopted by us."
He also lauded Kamco Invest team for their role as Issuance Advisors and Subscription Agents, and Kuwait Clearing Company, in the success of this offering, in addition to the support from the regulatory authorities including the Central Bank of Kuwait, the Capital Markets Authority, the Ministry of Commerce and Industry, and Boursa Kuwait.”
"The capital increase will strengthen KIB’s capital base and enhance its capital adequacy ratios. The proceeds from the offering will contribute to the Bank's overall growth trajectory and business development activities," noted Bukhamseen.
"In further efforts to cement our position as a leading and competitive financial institution in the region, we remain committed to implementing our transformational strategy that is in step with the banking sector’s continuous development and reflects our future-focused vision," he added.
KIB's financial results for the fiscal year 2022 showcased a solid financial performance, with a net profit attributable to shareholders reaching almost KD13.6 million, with earnings per share (EPS) of 7.92 fils, and a steady growth rate of 25% compared to the previous year.
The consolidation financial statements indicated that the Islamic lender's assets grew by 14%, reaching KD 3.58 billion by the end of 2022 – compared to almost KD 3.14 billion in the preceding year.
This growth resulted from an increase in financing portfolio by KD 346 million to reach almost KD 2.62 billion at the end of 2022, compared to KD 2.27 billion at the end of 2021, achieving a growth of 15%, denoting an upward growth trajectory and sound financial performance for the Bank.
For the first quarter, KIB achieved net profit attributable to shareholders amounting to KD3.5 million, while its total operating income was almost KD17.2 million, which grew 7% compared to first quarter 2022.
Bukhamseen said: "As a forward-looking bank, we will use the capital increase to achieve the objectives drawn in our dynamic strategy to enrich customers’ experiences by providing innovative, next-level products and services that meet their needs and add real value to their lifestyles."
"In addition, we will continue driving innovation in the banking sector by investing in digital technology, which, in turn, would enable us to provide holistic solutions to cope with the rapid changes in the local and regional markets," he added.-TradeArabia News Service
