DIB Board approves increase of Foreign Ownership to 25% [Emirates News Agency (WAM) (United Arab Emirates)]
(Emirates News Agency (WAM) (United Arab Emirates) Via Acquire Media NewsEdge) Dubai, 25th December, 2013 /WAM/ -- In a meeting held today, the Board of Directors of Dubai Islamic Bank approved to increase the foreign ownership limit /FOL/ from the current level of 15 ?? ????? to 25 ?? ?????, subject to necessary regulatory approvals.
The decision was taken to address the huge demand for DIB shares by large foreign institutional investors. With the market up on the rise, DIB has become one of the most sought after scripts signifying the rising investor confidence in the bank s growth story and strategy over the coming years. Although a highly liquid scrip on the exchange with approximately 60 ?? ????? free float, the foreign ownership cap was restricting the large global institutional investors keen to participate in the organisation s success.
With the MSCI upgrade taking effect next year, the decision to raise the cap has opened doors for numerous global investors to take advantage of their emerging market allocations and invest in one of the top picks on the exchange.
"We have always had strong confidence in the DIB franchise, its vintage and the deep-rooted nature of its relationship with all stakeholders", said Dr. Adnan Chilwan, CEO DIB. "Following a well-crafted strategy during the economic downturn, we ensured that, while aligning the bank to the adverse market conditions prevailing at the time, we remain cognizant of stakeholders expectations from the organization. Hence, the strategy and the business model shift was squarely aimed to improve and maximize returns for the benefit of stakeholders, including local, regional and global investors".
"With the improved overall economic climate as well as the spectacular performance of DFM over the last year, we were under increasing pressure to allow greater liquidity for foreign investors, particularly the institutional funds," he added. "Further, our open and transparent stance with the investment community and the active involvement in various deal and non-deal roadshows across the globe has been a major contributor in creating awareness of and belief in the DIB story. The bank s stock is up significantly so far this year and we remain confident that, with a return to growth, we will continue to fulfill our commitments to all stakeholders"
With the Board approval for FOL increase in place, the bank will now proceed to follow the required regulatory process to formalise this decision in due course.
(c) 2013 Emirates News Agency (WAM) Provided by Syndigate.info, an Albawaba.com company
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