Palestine Islamic Bank issues shares for secondary offering to raise its capital to $75 Million
Palestine Islamic Bank has issued 3 million shares in a general secondary offering to raise its paid up capital to $75 million dollars in the first stage with the objective to raise said capital to 100 million dollars. The secondary offering comes in response to the requirements of Palestine Monetary Authority on and in accordance with the resolution of the extraordinary General Assembly of the Bank held on 24/10/2010.
Mr. Bayan Qasem, General Manager of Palestine Islamic Bank said “The subscription commenced on Monday 17/04/2017 and will continue until 14/05/2017 and will be open only to shareholders of the Palestine Islamic Bank PLC registered with the company on 10/04/2017. The shares will be issued at $1 with a bonus issue of $0.65 making the total value of each share $1.65.
He also noted that shareholders are entitled to subscribe up to a maximum of 4.54% of their current shares through all branches of Palestine Islamic Bank. Similarly those out of country will be able to subscribe by sending the value of their subscription to a designated account advertised through the bank’s website.
The GM stressed that the shares in this general secondary offering are common stock equal in rights and obligations without discrimination among them, pointing out that a subscriber was required to pay the value of the shares in full when submitting their request and noting that all non-subscribed shares will return to the company's Board of Directors to decide on in conformity with the regulations, instructions of the relevant authorities and only after obtaining the approval of Palestine Capital Market Authority.
It is worth mentioning that in 2016, Palestine Islamic Bank had floated 12.5 million shares in general secondary offering to shareholders on 28/04/2016 and up to 25% of the number of shares owned by each shareholder where the subscription at that stage reached 78.89% of the offered shares. As a result, the remaining 2.17 million shares were offered in the second phase having been subscribed to at five times the amount offered with paid in capital reaching $62.5 million.