Dubai – Mubasher: The shareholders of Ajman Bank approved to increase the capital by AED 550 million rights issue, according to a bourse disclosure.

The DFM-listed lender highlighted that the offer price for new shares will be at a nominal value of AED 1 per share for 550 million shares.

Ajman Bank will use the proceeds of the raise to anchor its capital base in order to comply with the central bank capital adequacy requirements and meet the business needs of customers. The bank also aims to boost its working capital and generate cash flows.

Meanwhile, the capital hike is subject to the approvals of the Central Bank of the UAE (CBUAE) as well as the Securities and Commodities Authority (SCA).

In the first quarter (Q1) of 2023, Ajman Bank logged net profits valued at AED 49.15 million, higher than AED 33.92 million in the January-March 2022 period.

Net operating income enlarged to AED 231.57 million in Q1-23 from AED 123.96 million in Q1-22, while the basic and diluted earnings per share (EPS) went up to AED 0.02 from AED 0.01.