RAKBANK received approval today from shareholders at its adjourned Extraordinary General Assembly Meeting (EGM) to raise its Foreign Ownership Limit (FOL) by 20 percent. Upon approval from the relevant authorities, the new FOL would be 40 percent and aims to improve the liquidity available to foreign investors.
Active engagement with local and international investors has become a key focus for RAKBANK since Peter England took over as Chief Executive Officer in November 2013. “The decision to increase the limit of foreign ownership is important to us as we are currently running very close to our existing limit of 20%,” said England. “As an actively traded stock on Abu Dhabi exchange (ADX), we see extensive demand for RAKBANK stock by interested parties from across the globe. Despite a tight free float, a higher limit on foreign ownership makes additional room for international buyers and also complements the recent developments of the UAE’s stock markets to attract new foreign investments.”
As of March 31 this year, the Bank’s earnings per share stood at 0.2 dirhams and total shareholders’ equity was approximately AED 6 billion dirhams. Its capital adequacy ratio was 27.6 percent, one of the highest among banks in the UAE.
The FOL increase becomes effective once regulatory formalities are completed.