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Kuwait’s Burgan Bank Plans KD21.6m Rights Issue

Kuwait’s Burgan Bank Plans KD21.6m Rights Issue

Burgan said it plans to issue 216 million new shares and that the rights issue will raise its paid-up capital to KD197.18 million.

Burgan Bank, Kuwait’s third-largest lender by assets, will launch a KD21.6 million ($74.8 million) rights issue by the end of 2014 pending regulatory approvals, it said in a bourse filing on Sunday.

Burgan said it plans to issue 216 million new shares and that the rights issue will raise its paid-up capital to KD197.18 million.

This would indicate that shares would be priced at KD0.1 in the rights issue, a significant discount to the KD0.54 the stock closed at on Thursday.

The shares will be available to existing shareholders on a proportional basis and any unsold shares will then be put on general sale, the bank said in the statement.

Kuwait Projects Company (KIPCO), which owns a 57.94 per cent stake in Burgan, had said in September that it received approval from the country’s central bank to increase its stake in the lender by five per cent.

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