Burgan Bank Completes KWD 50 million Rights Issue, Oversubscribed 1.34x
Burgan Bank successfully completed its KWD 50 million Rights Issue, attracting total subscriptions of KWD 66.79 million, equivalent to 133.57% of the Issue Shares offered for subscription. The subscription period for the Rights Issue closed as scheduled on 14 September 2026, underscoring the strong response to the offering.
A total of 277.8 million Issue Shares were offered for subscription and fully subscribed at an issue price of KWD 0.180 per share, comprising KWD 0.100 in nominal value and KWD 0.080 in share premium, for aggregate proceeds of KWD 50 million.
Rights Issue attracts KWD 66.79 million in total subscriptions, reflecting strong participation from eligible shareholders and investors
The capital increase is expected to strengthen the Bank’s capital position, enhance financial flexibility and support disciplined, long-term value creation
Following the successful completion of the subscription process, all applicable regulatory and corporate procedures relating to the increase of the Bank’s issued and paid-up share capital have been completed. The Issue Shares have been fully allocated and allotted, and the new shares have been issued in accordance with the applicable regulatory, subscription and allocation procedures.
Subscription and Allocation Results
The Rights issue attracted strong participation from eligible shareholders and holders of Pre-emption Rights.
Total subscriptions amounted to 371.03 million shares, representing an overall subscription coverage ratio of 133.57%, with a total value of KWD 66.79 million. A total of 248.17 million shares were subscribed through the exercise of pre-emptive rights, representing a strong subscription coverage ratio of 89.34%. In addition, applications were received for 122.86 million additional shares, of which 29.60 million unsubscribed shares were made available to applicants for additional shares and allocated on a pro-rata basis at an overall allocation ratio of 24.09%.
Strengthening Burgan Bank’s Capital Position
Following the successful completion of the Rights Issue and the allotment and issuance of the new shares in accordance with applicable regulatory and corporate procedures, Burgan Bank’s issued and fully paid-up shares will increase by 277.8 million shares, from 3,996.4 million shares to 4,274.1 million shares, representing an increase of approximately 7.0%.
The Bank’s paid-up share capital will increase by KWD 27.8 million, from KWD 399.6 million to KWD 427.4 million. The remaining KWD 22.2 million will be recorded as share premium, resulting in a total increase in the Bank’s shareholders’ equity of approximately KWD 50 million.
The capital increase is expected to improve the Bank’s CET1 ratio, Tier 1 capital ratio and Capital Adequacy Ratio by approximately 60 basis points, subject to final regulatory treatment.
The enhanced capital position provides the Bank with greater capacity to pursue its strategic priorities while maintaining a prudent balance between growth, capital efficiency, liquidity and risk management.
A Long-Term Commitment to Strength and Stewardship
Speaking about the issuance, Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah, Chairman of Burgan Bank, said: “The successful completion of Burgan Bank’s capital increase, together with the strong participation in the Rights Issue, is a testament to the confidence our shareholders place in the Bank, its strategy, and its long-term direction. As a Board, our responsibility extends beyond near-term performance; it is about ensuring that Burgan Bank is positioned with the strength, resilience, and governance foundations required to create sustainable value over the long term. This strengthened capital base gives the Bank greater capacity to pursue its strategic priorities with discipline, while continuing to uphold the highest standards of prudent banking, sound risk management, and responsible stewardship.”
Deploying Capital for Sustainable Growth
The strengthened capital base gives Burgan Bank greater capacity to execute its core strategic priorities: deepening its Kuwait franchise, optimizing its asset mix, advancing digital transformation, and selectively pursuing opportunities that support sustainable and profitable growth.
Capital will continue to be deployed with discipline, prioritizing areas that strengthen the Bank’s competitive position, enhance customer value and support sustainable long-term returns, while maintaining a prudent approach to financial and risk management.
Commenting on the successful completion of the capital increase, Mr. Tony Daher, Group CEO of Burgan Bank, said: “The successful completion of this capital increase and the strong demand for the Rights Issue mark an important milestone for Burgan Bank, reflecting the confidence our shareholders have placed in the Bank’s strategy and future direction. The additional capital strengthens our ability to execute our priorities, deepen our position in Kuwait, optimize our balance sheet and invest selectively in areas that can generate sustainable long-term value.”
He added: “Our focus remains on disciplined growth and prudent capital allocation. We will continue to direct resources toward opportunities that strengthen our competitive position, enhance customer value and support sustainable returns, while maintaining the strong financial position and risk discipline that underpin our performance.”
Bringing Banking and Capital Markets Expertise Together
The Rights Issue was managed by KAMCO Invest, acting as Issuance Advisor and Subscription Agent. As part of Burgan Bank’s wider group, KAMCO Invest brought its investment banking and capital-markets expertise to the transaction, supporting the Bank throughout the subscription, allocation and allotment process and contributing to the smooth execution of the Rights Issue.
Mr. Tony Daher, Group CEO of Burgan Bank, added: “The successful completion of the Rights Issue also demonstrates the value of the capabilities available across our wider group. The combination of Burgan Bank’s banking expertise and KAMCO Invest’s capital-markets capabilities supported the efficient execution of the transaction and reflects our ability to leverage complementary strengths across the Group. This collaboration contributed to the smooth execution of the Rights Issue and reinforces the value of our integrated capabilities.”
Appreciation to Shareholders and Transaction Partners
Concluding his remarks, Sheikh Abdullah Nasser Sabah Al Ahmad Al Sabah, Chairman of Burgan Bank, said: “On behalf of the Board of Directors, I would like to extend my sincere appreciation to our shareholders for their continued trust and participation in this issuance. I also wish to recognize the constructive cooperation of the Central Bank of Kuwait and the Capital Markets Authority, whose regulatory oversight and guidance supported the process, as well as the Kuwait Clearing Company, KAMCO Invest in its capacity as Issuance Advisor and Subscription Agent, and our legal and financial advisers, professional firms, and all internal and external teams whose expertise, collaboration, and commitment supported the execution of the transaction.”
He added: “The successful subscription, allocation and allotment of the Issue Shares reflect a collective effort, and we are grateful to everyone who contributed their expertise and commitment to the successful completion of the capital increase.”
With all regulatory and corporate procedures relating to the capital increase completed, and the allocation, allotment and issuance of the new shares concluded, Burgan Bank enters its next phase from a strengthened capital position, with greater capacity to advance its strategic priorities and continue creating sustainable value for its shareholders, customers, employees and wider stakeholders.
