Burgan: Capital increase subscription reached 1.34 times the issue size
Burgan Bank announced the successful completion of its capital increase subscription, achieving an oversubscription rate of 133.57% of the shares offered. The subscription period for the capital increase of KWD 50 million closed on schedule on September 14, 2026, with total subscriptions reaching KWD 66.79 million.
A total of 277.8 million preferential rights shares were subscribed at a price of KWD 0.180 per share, comprising KWD 0.100 as par value and KWD 0.080 as issue premium, bringing the total issue value to KWD 50 million.
Following the successful completion of the subscription process, all applicable regulatory procedures related to the increase in the bank’s issued and fully paid-up capital have been fulfilled.
The shares of the issue have been fully allocated, and the new shares have been issued in accordance with the prevailing regulatory, subscription, and allocation procedures.
The preferential rights issue witnessed strong participation from eligible shareholders and rights holders. Total subscriptions reached 371.03 million shares, equivalent to an overall oversubscription rate of 133.57%, with a total value of KWD 66.79 million.
Of this, 248.17 million shares were subscribed through the exercise of preferential rights, representing a strong coverage rate of 89.34%. Additionally, applications were received for a further 122.86 million shares of the issue. Of these, 29.60 million unsubscribed shares were made available to additional applicants and allocated on a pro-rata basis, resulting in an overall allocation rate of 24.09%.
Upon the successful completion of the preferential rights issue and the allocation and issuance of the new shares in accordance with prevailing regulatory and corporate procedures, Burgan Bank’s issued and fully paid-up share capital will increase by 277.8 million shares, from 3,996.4 million shares to 4,274.1 million shares, representing an increase of approximately 7%.
The bank’s paid-up capital will also increase by KWD 27.8 million, from KWD 399.6 million to KWD 427.4 million.
The capital increase is expected to bolster the bank’s Common Equity Tier 1 (CET1) ratio, Tier 1 capital ratio, and overall capital adequacy ratio by approximately 60 basis points, subject to the completion of relevant regulatory procedures.
The strengthened capital position will enable the bank to advance its strategic priorities with greater capacity, while maintaining a prudent balance between growth, capital efficiency, liquidity, and risk management.
Commenting on the issue, Sheikh Abdullah Nasser Al-Sabah, Chairman of the Board of Burgan Bank, stated: “The successful completion of Burgan Bank’s capital increase and the strong uptake of the preferential rights issue are clear evidence of our shareholders’ confidence in the bank, its strategy, and its long-term direction. Sheikh Abdullah Nasser added that the Board’s responsibility extends beyond short-term performance to consolidating Burgan Bank’s position and equipping it with the strength, resilience, and governance foundations necessary to deliver sustainable long-term value. Strengthening the capital base will enable the bank to pursue its strategic priorities with greater discipline, while continuing to uphold the highest standards of prudent banking, sound risk management, and responsible stewardship.”
The enhanced capital base will empower Burgan Bank to execute its core strategic priorities, including strengthening its operations in Kuwait, improving asset diversification, advancing its digital transformation, and selectively pursuing opportunities that support sustainable and profitable growth.
The bank will continue to deploy capital with discipline, prioritizing areas that enhance its competitive position, increase the value delivered to customers, and support the achievement of sustainable long-term returns, while maintaining a prudent approach to financial management and risk management.
Commenting on the successful completion of the rights issue, Tony Daher, Group Chief Executive Officer of Bank of Kuwait (Burgan), stated: “The successful completion of the capital increase and the strong subscription to the rights issue represent a significant milestone in Bank of Burgan’s journey, reflecting the confidence our shareholders place in the bank’s strategy and future direction. The additional capital enables us to execute our priorities, consolidate our position in Kuwait, strengthen our balance sheet structure, and make selective investments in areas capable of delivering sustainable long-term value.”
Daher added: “Our focus remains on achieving disciplined growth and prudent capital allocation. We will continue to direct resources toward opportunities that strengthen our competitive position, enhance the value delivered to customers, and support sustainable returns, while maintaining the strength of our financial position and the discipline in risk management that form the cornerstone of our performance.”
Camco Invest managed the rights issue as the issuing advisor and bookrunner. As part of the Bank of Burgan Group, Camco Invest leveraged its expertise in investment banking and capital markets services for this issuance, supporting the bank through various stages of the subscription and allocation process and contributing effectively to the smooth execution of the rights issue.
Daher further stated: “The successful completion of the rights issue underscores the significant potential within our group. The synergy between Bank of Burgan’s banking expertise and Camco Invest’s capital markets expertise enabled the efficient execution of the transaction, reflecting our ability to leverage shared strengths and maximize the value of our integrated capabilities within the group.”
Sheikh Abdullah Al-Nasser said: “On behalf of the Board of Directors, we extend our sincere gratitude and appreciation to the bank’s shareholders for their continued confidence and participation in this issuance. We also express our appreciation to the Central Bank of Kuwait and the Capital Markets Authority for their constructive cooperation and their regulatory and advisory roles in supporting the process, as well as to the Kuwait Clearing Company, Camco Invest as the issuing advisor and bookrunner, our legal and financial advisors, specialized professional firms, and all internal and external teams whose expertise, cooperation, and commitment contributed to the successful completion of the process.”
Sheikh Abdullah added: “The success of the rights issue is the result of collective effort, and we are grateful to everyone who contributed their expertise and commitment to bringing the process to this stage.”
