Kuwait Finance House (KFH), the world’s leading Islamic financing institution, has announced the beginning of the subscription to increase its capital, starting from Wednesday, June 5th until June 19th. Subscription will be available to KFH shareholders who had registered their names on June 4th.
Chief of Operations Anwar Al-Gheith revealed that the rate for subscription is 500 fils per share, 100 fils nominal value, and 400 fils par value. He added that Kuwait Clearing Company will manage the subscription process.
Al-Gheith explained that shareholders who registered their names a day before the subscription, can head to Kuwait Clearing Company on the fifth floor at Ahmad Tower in Sharq, in order to receive a notification that includes the name, number of the shareholder, and the number of possessed shares. Then the contribution to the increase must be transferred either as transferal for KFH shareholders, or through an approved cheque or telex. The next step is to visit one of KFH’s branches to deposit the money in KFH’s subscription account, and then heading to the Kuwait Clearing Company again to complete the process while carrying the banking notification.
Moreover, Al-Gheith stated that there is no ceiling for subscriptions, and each shareholder is entitled to subscribe with a many shares as he pleases, but his priority right is limited to 20% of the number of shares he possessed a day before the subscription process. The remaining shares will be allocated to the subscribers according to the rate of each shareholder’s subscription, based on the subscription instructions found at the Kuwait Clearance Company, or www.kfh.com
He went on to say that the 20% increase in capital, which is KD 64 million, will allow the capital to reach KD 383 million. He asserted that this step serves to reinforce the bank’s overseas expansion plans, increase the market share, execute development plans, and upgrading programs and work mechanisms to cement KFH’s leading role.
The increase in capital is expected to impact KFH’s capital adequacy ratio and pressure tests, in addition to the requirements of supervisory authorities. Capital adequacy ratio is expected to be reached by 17% during 2013, according to the structuring plan.