The local Muslim Commercial Bank (MCB) is planning a further capital increase through a rights issue in February 1995 when 16.8 million shares will be issued with a nominal value of Rs 167.8 million ($5.5 million). The capital will increase by 15 per cent to
Rs 1,285.7 million ($42 million). The shares will be sold at Rs 40 ($1.30) a share, which includes a premium of Rs 30 ($0.98).
MCB’s capital has grown by 69 per cent during 1994. A rights issue in August raised the capital to Rs 993.8 million ($32.5 million) from Rs 662.5 million ($21.6 million), and a bonus share issue in September raised it to its current level of Rs 1,118 million ($36.5 million).
The bank aims to strengthen its equity and improve its capital adequacy ratio through these measures. The additional funds may be used for investment or advances, MCB says.