Burqan closes capital increase subscription of 50 million dinars with coverage exceeding 133.5 percent
Burgan Bank announced the successful completion of its capital increase subscription, achieving an oversubscription rate of 133.57 percent of the shares offered. The subscription period for the capital increase of 50 million dinars closed on its scheduled date of September 14, 2026, with total subscriptions reaching 66.79 million dinars.
A total of 277.8 million pre-emptive rights shares were subscribed at a price of 0.180 dinars per share, comprising 0.100 dinars as par value and 0.080 dinars as issue premium, bringing the total issue value to 50 million dinars.
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 were fulfilled. The shares were fully allocated, and the new shares were issued in accordance with prevailing regulatory, subscription, and allocation procedures.
The pre-emptive rights issue witnessed strong demand from eligible shareholders and rights holders. Total subscriptions amounted to 371.03 million shares, representing an overall oversubscription rate of 133.57 percent and a total value of 66.79 million dinars. Of these, 248.17 million shares were subscribed through the exercise of pre-emptive rights, reflecting a strong coverage rate of 89.34 percent. Additionally, applications were received for 122.86 million extra shares from the issue. Of the un-subscribed shares, 29.6 million were made available to additional applicants and allocated on a pro-rata basis, resulting in an overall allocation rate of 24.09 percent.
Upon the successful completion of the pre-emptive 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 to 4,274.1 million shares, representing an increase of approximately 7 percent.
The bank’s paid-up capital will also increase by 27.8 million dinars, from 399.6 million to 427.4 million dinars. The remaining amount of 22.2 million dinars will be recorded as issue premium, bringing the total increase in the bank’s shareholders’ equity to 50 million dinars.
The capital increase is expected to strengthen the bank’s Common Equity Tier 1 (CET1) ratio, Tier 1 capital ratio, and capital adequacy ratio by approximately 60 basis points, subject to the completion of relevant regulatory procedures.
The enhanced capital base 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 Directors of Burgan Bank, stated: “The successful completion of Burgan’s capital increase and the strong response to the pre-emptive rights issue are a clear testament to our shareholders’ confidence in the bank, its strategy, and its long-term direction. As a board of directors, our responsibility extends beyond short-term performance to consolidating Burgan’s position and equipping it with the strength, flexibility, and governance foundations necessary to deliver sustainable long-term value. Strengthening our capital base will enable the bank to pursue its strategic priorities with greater discipline, while continuing to adhere to the highest standards of prudent banking, sound risk management, and responsible stewardship.”
The strengthened capital base will empower Burgan to execute its core strategic priorities, including enhancing 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 Zaher, Group Chief Executive Officer of Burgan, stated: “The successful completion of the capital increase and the strong demand for the rights issue represent a significant milestone in 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.”
Zaher 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 issue advisor and bookrunner. As part of the Burgan Bank 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.
Zaher added: “The successful completion of the rights issue underscores the significant potential within our group. The synergy between 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.”
Concluding his statement, Al-Nasser said: “On behalf of the Board of Directors, I extend my sincere gratitude and appreciation to the bank’s shareholders for their continued confidence and participation in this issuance.” He added: “I also express my 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 in its capacity as issue 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 Al-Nasser stated: “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.” He added: “With the successful completion of the capital increase, Burgan enters its next phase with a stronger capital base and greater capacity to advance the execution of its strategic priorities and continue delivering sustainable value to its shareholders, customers, employees, and other stakeholders.”
